LSJ_ceiling_increase_for_GS35F0298W_NNX14AA45Z-Final(12-22).pdf

NATIONAL AERONAUTICS AND SPACE

ADMINISTRATION

NASA SHARED SERVICES CENTER

LIMITED SOURCE JUSTIFICATION

Blanket Purchase Agreement (BPA) NNX14AA45Z

I recommend that NSSC, NASA Shared Service Center increase the ceiling for BPA NNX14AA45Z awarded to Four, Inc. under GSA Schedule GS-35W-0298W to procure IBM Maximo and “Other Software” (i.e., Business Analytics, Collaboration Solutions, Industry Solutions, Information Management, Rational, Tivoli and WebSphere). The BPA includes a one year base period and four one (1) year options (i.e., five years total). This action was competed amongst IBM value added resellers pursuant to FAR 8.405-6(b), Items Peculiar to One Manufacturer, and awarded against GSA Schedule Contract GS-35F-0298W on December 30, 2013.

The total estimated cost of the BPA is being increased from $9,936,723.00 by $4,264,861 to $14,281,584. The first table below reflects the original IGCE for spend for the Base and all Options. Due to increased utilization of “Other Software” greater than originally estimated, the request to increase the ceiling is described in the second table.

Original IGCE for spend for Base and all Options

IBM

Products

Base Year Option Year 1 Option Year 2 Option Year 3 Option Year 4 Total for Base and all Options

Maximo $1,217,000 $1,217,000 $1,217,000 $1,217,000 $1,217,000 $6,085,000 Other Software

$2,348,468

$375,755 $375,755 $375,755

$375,755 $3,851,488

Total Estimated Spend

$3,565,515

$1,592,802

$9,936,723.00

Actual Spend and Projected Spend for Base and all Options

IBM

Products

Base Year Actual Spend

Option Year 1 Actual Spend

Option Year 2 Actual Spend

Option Year 3 Projected Spend

Option Year 4 Projected Spend

Total for Base and all Options

Maximo $1,217,000 $1,217,000 $1,217,000 $1,217,000 $1,217,000 $6,085,000 Other Software

$2,061,907

$1,917,873

$1,915,538

$2,221,266

$0

$8,116,584

Total Projected Spend

$3,278,907

$3,134,873

$3,132,538

$3,438,266

$1,217,000

$14,201,584

As of December 6, 2016 NASA has placed call orders totaling $9,554,417 under this BPA, leaving an available ceiling of $382,306.00 for new orders and renewals. In order to place renewal orders at the discounted price of 5% off the government list price on GSA Schedule GS-35F-0298W as negotiated into this BPA an increase in the ceiling is necessary prior to exercising the third option period.

This BPA provides a vehicle to procure new and recurring requirements for all NASA Centers beginning in the first quarter of fiscal year (FY) 14. The IBM BPA provides the NSSC the ability to negotiate improved discounts, satisfy acquisition efforts and greatly reduce procurement lead time, thus allowing the NSSC the ability to be more responsive to the Agency’s needs. Furthermore, increasing the ceiling of this BPA will enable all NASA Centers to renew their existing licenses and continue to leverage their combined buying power of the obtained advantageous pricing, while simultaneously allowing the Agency to centrally track and manage IBM product purchases.

This recommendation is made pursuant to FAR 8.405-6(a)(1)(B)(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.

1. IBM Maximo software is proprietary to IBM. Various projects such as Kennedy Space Center’s (KSC) Institutional Services Contract (ISC) for maintenance of KSC’s facilities, KSC’s Test and Operations Support Contract (TOSC) for overall management and implementation of ground systems capabilities, flight hardware processing and launch operations at KSC and various others across the Agency currently utilize IBM Maximo software products. The IBM Maximo solution unifies comprehensive asset life cycle and maintenance management on a single platform, providing insight into all of an organization’s enterprise assets, their conditions and work processes to achieve better planning and control. It enables various NASA organizations to maximize the value of all physical assets by providing an integrated set of applications which enhance the enterprise software capabilities designed to help them keep their plant or facility at peak performance.

2. The NSSC has historically managed the NASA contracting vehicle to procure additional Maximo software licenses, maintenance and technical support. The use of IBM Maximo as an integrated workplace to assist with physical asset management is projected to continue as new NASA programs and projects are established and /or expanded. Real property management is integral in achieving NASA’s Vision and Mission in science, technology, and discovery. NASA provides value to its programs and workforce through enhancement of real property management by ensuring real property assets meets Agency goals. IBM Maximo supports this by assisting NASA in providing the Agency the tools to provide the appropriate stewardship of these assets to achieve the best value for the American taxpayers’ investment. Given NASA’s changing project/program environment, usage patterns of individual software products during the year and from year-to-year are difficult to predict at NASA Centers and across the Agency.

3. As the Agency has invested extensively in the projects/programs listed above, it would be cost prohibitive and cause a major disruption of software availability and work production if the current solution is replaced. NASA and NASA contractors have to date purchased over 11K Maximo core licenses plus many add-on applications and IBM Maximo Mobile application licenses. The estimated cost of a Maximo core license is approximately $3K each. Using GSA Schedule contract discounts, the estimated investment for the Agency for only the licenses is $33M. This $33M does not include the cost of the servers, mobile devices and labor to maintain the servers and the Maximo implementation within the Agency. In addition, NASA has invested approximately $3M to $5M over the past several years customizing and upgrading Maximo to process support requirements. Today over 14 NASA sites have Maximo implemented. Every center’s contractor uses their Maximo implementation differently based on their unique contractor requirements and processes. Their customizations have evolved over the years as the upgrade from older versions of Maximo to the latest version. The Maximo Core licenses have over 12 unique modules and over 110 unique applications, which support functions such as Service Desk, Work Orders , Job Plans, Work Flows, Escalations, Labor Scheduling, Certification tracking, Asset Management, Store Room Inventory, Purchase Orders, Invoicing and Custom Reporting. The NASA Maximo Subject Matter Expert (SME) estimates that it would cost the Agency over $50M to replace the existing Maximo implementation across the Agency with another product with similar functionality. However, this estimate does not fully account for a replacement product that may also require customization expanded functionality, and training to meet the current capabilities and Mission needs that the current NASA Maximo implementation provides the Agency.

4. The high amount of risk and increased cost (in excess of $50M to replace the Maximo licenses and infrastructure that is currently in the Agency) offsets the perceived benefits gained by considering alternative solutions. As such, no other supplies or services will satisfy the agency’s requirements. The IGCE includes costs that support maintenance support for NASA’s current Maximo license install base. The remaining portion of the estimate accounts for additional purchases derived from the initial software densities, support and training that was procured at various NASA Centers have been transitioned to the BPA. This transition led to increased utilization over the original independent government estimate.

5. Although NASA intends to establish a new SEWP catalog to place orders for new IBM software licenses and/or consulting services requirements, a new award is not expected to be completed prior to January 2017. The new catalog with be established with a base period of performance of one year with four one year options. Prior to that date NASA has a large number of licenses for Maximo, Tivoli, Rational, and other IBM products that are due for renewal on or before December 30, 2016. NASA intends to award the renewal orders under the BPA with Four, Inc.

which will require an increase above the current ceiling of $9,936,723.00 as described above.

6. When NASA established BPA NNX14AA45Z with Four, Inc. an Enterprise User License Agreement for Maximo was established. This EULA includes fixed yearly pricing of $1,217,000.00 for the base and each option year. Renewing these licenses under the current BPA will allow NASA to benefit from the deeply discounted pricing that was negotiated into the terms and conditions of the BPA and allow NASA to retain ownership of the licenses upon completion of the fourth and final option period. The final option period once exercised will expire on December 29, 2018.

7. Although IBM Maximo is available from a number of Value Added Resellers on both SEWP and

GSA, NASA is procuring this sole source from Four, Inc. due to the deeply discounted pricing negotiated in the original award of BPA NNX14AA45Z. If NASA were to recompete this requirement, Market Research has revealed the license renewal cost for Maximo would increase more than 200% above the original negotiated price. Therefore it is in NASA’s best interest to increase the ceiling on the current BPA and renew the Maximo license in option years 3 and 4 under the discounted pricing as previously negotiated with the VAR and IBM.

There are no barriers to future competition. NASA has an approved Acquisition Plan (AP) and plans to post a Request for Quote (RFQ) on the NASA Solutions for Enterprise Procurement (SEWP) for non- Maximo IBM software, maintenance, and consulting services. Upon selection for award, NASA intends to establish a unique NASA catalog with a small business concern who is an IBM authorized Value Added Reseller.

In developing the AP, market research conducted in September 2016 revealed IBM products are available through SEWP V contracts, GSA, or open market. The intent is to establish a unique catalog (NASA unique CLIN) on the SEWP V as this has proved to be the most advantageous method of procuring IT software, maintenance, and consulting services. Market research of SEWP V indicates there are a sufficient number of contract holders for this requirement.

I hereby certify that the above justification is complete and accurate to the best of my knowledge and belief. In addition, I hereby determine that the order represents the best value to the Government consistent with FAR 8.404(d).

Darryl A. Smith Date Agency Software Manager Office of the Chief Information Officer (OCIO) NASA Shared Services Center (NSSC)

Edward V. Wallace Date Contracting Officer

CONCURRENCE:

Michael J. Vicory Date Procurement Officer

APPROVAL:

Anita F. Harrell Date NSSC Competition Advocate