(P03) JA Redacted.pdf

COBOL-IT RunTime and Support Control Number VA-23-00026379

JUSTIFICATION FOR A SOLE SOURCE AWARD

FOR CERTAIN COMMERCIAL ITEMS

1. Contracting Activity: Department of Veterans Affairs (VA)

Office of Procurement, Acquisition, and Logistics Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action: This proposed action is for a firm-fixed price sole-source contract with ESI Services, LLC, 669 Forest Lair, Tallahassee, FL, 32312, for the procurement of additional COBOL-IT software licenses and maintenance support that must be compatible with the VA’s Solaris Operating System.

3. Description of the Supplies or Services: VA, Office of Information and Technology, Information and Technology Operations and Services, Infrastructure Operations (IO) has a requirement for 16 additional COBOL-IT Run Time licenses, plus support. This requirement is due to the expansion of our non-production testing environment. The environment will be adding an additional four servers, with 4 additional cores, for a total of 16 cores. VA utilizes COBOL-IT software to process VA compensation and pension claims for Veterans and dependents. VA has existing COBOL-IT licenses and a support contract through ESI Services, LLC. The period of performance will be12-months from the date of award with two 12-month option periods. The total estimated price of the proposed action is $153,831 inclusive of all option periods.

4. Statutory Authority: The statutory authority permitting other than full and open competition is 41 U.S.C. 1903 as implemented by the Federal Acquisition Regulation (FAR) 13.501, entitled “Special Documentation Requirements.”

5. Rationale Supporting Use of Authority Cited Above: ESI Services, LLC is the only source for the required software licenses and maintenance support. The manufacturer of VA’s perpetual licenses of COBOL-IT Complier Suite plus Run Time Software Enterprise Sun SPARC software is COBOL-IT which is located at 231 Rue, Saint-Honoré, 75001 Paris, France, and COBOL-IT has designated only one North American distributor: ESI Services, LLC. The current IO infrastructure is based on existing COBOL-IT software, and no other software licenses can interoperate with VA’s current COBOL-IT software infrastructure due to the proprietary protocols utilized by COBOL-IT. Therefore, VA requires software licenses and maintenance support compatible with the existing infrastructure protocols and functionality to ensure continued operational functionality. COBOL-IT provides compilers for file migration that are switch-compatible (making the files compatible across applications without the need for software solutions and licensing agreements) with the previous vendor, minimizing any rework needed in the hundreds of files used to build COBOL programs. Only COBOL-IT can provide the necessary software updates, due to the proprietary source code, required to develop and implement software updates.

COBOL-IT RunTime Software

VA-23-00026379

Acquisition of a different product, even if another one existed with qualifications that met VA's standard functional needs, would require duplicative support costs such as: the procurement of new software licenses, as no other software is compatible or interoperable with the existing COBOL-IT proprietary database structures, protocols, and software application programming interfaces; and fully re-compiling and re-deploying all applications that utilize this software. This effort would require a dedicated release cycle and a full regression and performance test. The processes to completely replace VA’s current COBOL IT infrastructure would cost at least $1,000,000 and would require at least 4 months to complete, based on historical efforts. Furthermore, any change to COBOL-IT code will impact all Veterans Benefits Administration (VBA) applications as COBOL-IT code provides core benefits services used by all VBA applications such as SHARE and Veterans Benefits Management System (VBMS). If unsuccessful, the 50,000 VBA employees who regularly access these systems will be unable to perform their duties. Therefore, only an authorized COBOL-IT reseller can provide the additional software licenses and maintenance support that meets the Government's requirements.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional sources that can meet the Government’s requirements. Additionally, the proposed action will be synopsized on the Contracting Opportunities Page in accordance with FAR 5.201. Any proposals that are received shall be evaluated.

7. Actions to Increase Competition: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research: The Benefits and Memorial Services/Benefits Integration and

Administration Operations team conducted market research on June 23, 2022 to determine a viable COBOL alternative to the COBOL IT product and to determine what options exist for COBOL IT software and maintenance support.

The research was focused on COBOL software, specifically the four COBOL products indicated as approved on the VA Technical Reference Model (TRM).

The TRM also identified additional approved COBOL add -on products that do not support this effort. TRM also identified several unapproved COBOL products.

The four COBOL product identified as potentially viable are:

1. COBOL IT (Compatible with Solaris OS, currently in use).

2. NetCOBOL / Fujitsu NetCOBOL (Not compatible with Solaris OS).

3. CA Vision COBOL (Mainframe oriented, not compatible with Solaris OS)

4. IBM Z/OS COBOL (Mainframe oriented, not compatible with Solaris OS).

Though the above-mentioned software provides similar services, none of them are compatible with VA’s current VBA COBOL IT based infrastructure and

COBOL-IT RunTime Software and Support therefore would not meet requirements. COBOL-IT is the only software that will meet VA’s requirements.

Additional Market research was conducted via Requests for Information (RFI) issued by VA on July 6, 2022, to the National Aeronautics and Space Administration Government Wide Acquisition Contract as well as the System for Award Management (SAM.gov) website. On July 12, 2022, the RFI closed, and no responses were received. On July 15, 2022, VA reached out to the sole North American distributor of COBOL-IT software (ESI Services). ESI confirmed that it was the sole North American provider of COBOL-IT software a n d m a i n t e n a n c e support, and further indicated it is unwilling distribute through any other resellers. ESI Services is a Small Business for NAICS code 541511.

9. Other Facts: None

COBOL-IT RunTime Software and Support

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Name Date: ________________________________

Title Signature: ____________________________

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable based on comparison with previous prices paid by the Government and determined to be fair and reasonable.

Matthew Newell Date: ________________________________

Procuring Contracting Officer Signature: ____________________________

12. Procuring Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Matthew Newell Date: ________________________________

Procuring Contracting Officer Signature: ____________________________