P03 JA - Sophia Software Invention and IP Database Services for TTP signed-.pdf

Acquisition ID#: 36C24E-24-AP-0429 Software as a Service Knowledge Management System

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C24E-24-AP-0429

1. Contracting Activity:

Department of Veterans Affairs Regional Procurement Office-East R&D 1010 Delafield Road. Bldg. 32, Suite 1A111 Pittsburgh, PA 15212

Requesting Activity:

Department of Veterans Affairs Office of Research and Development (ORD) Technology Transfer Program, (14RDTT) 810 Vermont Avenue, N.W.

Washington, D.C. 20420

2237 Number: 127-24-4-123-0102

2. Nature and/or Description of the Action Being Processed:

The VA Office of Research and Development (ORD), Technology Transfer Program (TTP) intends to negotiate on a sole source basis a new firm-fixed-price follow-on contract for continued use and access of the existing Wellspring Sophia Cloud-based, FedRAMP authorized Software as a Service (SaaS) solution. Continued use of Wellspring’s Sophia Cloud-based, FedRAMP authorized Software will be cost efficient with the elimination of costs associated with time and labor in configuring and integrating a new software system to meet VA TTP needs. Wellspring Sophia allows VA TTP the ability to retain current capabilities and add additional functionality through commercially available add-ons or enhanced feature modules. Sophia is a customized commercial-off-the-shelf (COTS) system purpose-built to manage all aspects of collaboration, marketing, management, and reporting related to technology transfer and related business activities for TTP. VA TTP has worked closely with Wellspring over the course of several years to heavily configure VA TTP’s version of Sophia in the cloud for specific VA workflows and business processes. This system is the only known FedRAMP-authorized technology transfer Knowledge Management System (KMS) on the market. VA TTP sponsored Sophia’s initial FedRAMP Authorization to Operate (ATO), which took more than a year to acquire. The configuration of the system has been carried out over several years. Wellspring Sophia for VA TTP is accessed and used by 127 VA Medical Centers across the United States for reporting invention disclosures and related activities and tens of thousands of VA TTP records are contained in the database, with millions of individual datapoints.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The mission of the Department of Veterans Affairs, Technology Transfer Program (TTP) is to serve the American public by translating the results of worthy discoveries made by employees of VA into practice. The TTP mission is to commercialize invention by VA employees for the benefit of Veterans and the public.

To achieve this mission TTP requires a cloud-based database containing all information on VA inventions and intellectual property and agreements administered by VA TTP. This system allows customization to reflect current TTP workflows and act as Software as a Service (SaaS). Specifically, the system provides TTP with the ability to facilitate the creation, retrieval, organization of activities, documents, and reports related to all business practices in TTP.

System Requirements, not limited to the following:

Capability to be used by unlimited users Cloud server/storage/ host, the System serves as a Software as a Service (SaaS) in compliance with all applicable VA and Government regulations and policies hosted in a Cloud environment

Full integration with the U.S. Patent Trademark Office /European Patent Office Integration. Receive notification of data from the USPTO and EPO on related patent prosecution matters;

Employ a business intelligence tool to automate TTP and relevant stakeholder processes and workflows

Provide recurring integrations with select data from other ORD or VA information systems, as allowed within the FedRAMP authorization boundary. This includes data exports from the VA ORD Research and Financial Accounting Tool (RAFT), VA Integrated Research Review Service (VAIRRS – a VA instance of IRBNet).

User customizable design of workflows/tasks:

Create various document forms related to TTP workflows to include, but not limited to invention evaluation, notification to stakeholders, invoices, and determination of rights;

System administrators have the capability to further customize without additional cost to TTP.

Individual users can define their personal view of each record type, including order of information displayed, ability to hide information, and ability to collapse a summary view of the information on screen.

Ability to route documents to various stakeholders dependent upon workflows for signature approval.

Track and calculate expenses and payments related to reimbursable funded agreements, contracts with vendors, patent prosecution, maintenance fees, and outside patent firm expenses (LEDES format);

Ability to receive emails from patent attorneys to a single designated email inbox, which are then accepted into an IP Notifications system

Projects module(s) for work both inside and outside of traditional inventions, agreements, and intellectual property filings

Functional capabilities:

Web-based invention disclosure and agreement submissions tool Accept submissions automatically and create agreement records in the System Supports online submissions from TTP’s stakeholders including the VA Office of

General Counsel, external attorney firms, academic affiliate’s technology transfer program representatives, each VA laboratory, and contracted marketing firms.

The functionality for users to email to and from the System records.

Merge new and old data through the upload of flat file data, upon request from TTP, at any time throughout the performance period of the contract.

Contract support services:

Support TTP business workflows for storing, searching, and retrieval of data related files to TTP business activities.

Regularly monitor and review the system for data duplicity and take remedial action as needed, upon approval from TTP program manager.

Provide customizable analytics reporting capability with dashboards that can be filtered down to an individual Licensing Officer or Technology Transfer Specialist portfolio, including inventions, intellectual property, agreements, projects, and other database objects/records.

Provide ongoing consultation for increasing program efficiency through further configuration and workflow improvements.

Provide migration support if TTP requests to move the data to any new environment.

Contractor shall provide virtual helpdesk and maintenance support for the system through online meeting platforms, phone, or email (at selection of the VA requestor), throughout the period of performance, and any option periods. The support shall cover continuous operations to support users throughout the US during regular business hours and include regular software updates based upon Contractor’s published update schedule.

Any System deficiencies shall be corrected by Contractor within 12 hours of notice.

The proposed contract will be based on an estimated cost for data processing, ATO support, IP Renewal, KMS licensing for unlimited users and SCOUT and unreported invention. The total value for this contract to include a five (5) year base period and a five (5) year option period is $7,446,640.00

The Period of Performance (POP) is:

Base Period: 08/01/2024 – 07/31/2029 Option Period: 08/01/2029 – 07/31/2034

4. Statutory Authority Permitting Other than Full and Open Competition:

( X ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR

6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

FAR 6.302-1, provides that full and open competition need not be provided for when it is necessary to award the contract to a particular source when the service is deemed to be available only from the original source in the case of a follow-on contract for the continued development of a highly specialized service. Competing this requirement and hiring a different company would result in a duplication of cost and unacceptable delays in fulfilling the agency’s requirements. The service is currently being provided by Wellspring Worldwide, Inc, under contract no. 36C24E19C0009. Wellspring developed and designed the Sophia cloud-based software as a service, (SaaS) specifically for the VA and the technology transfer program (TTP) office. Sophia is a web-based, FedRAMP-authorized platform with a “plug-and-play” modular architecture. The base Sophia system includes three component modules:

Inventions, Intellectual Property, and Agreements. Modules in Sophia maintain a 360° relationship structure, meaning each record type can be associated with virtually all other record types (e.g., Inventions can be connected to Intellectual Property, and Agreements) as well as with other records of the same type (e.g., Agreements can be related to other Agreements). From a single record, a viewer can see related information on one screen.

The Sophia system includes common functionalities, such as document templates, record change logging, emails, notes/comments, and electronic document storage. The base modules can be easily activated as needs evolve, providing flexibility to expand the software. Sophia is built to be configured to client preferences: data fields in the software can be renamed, reordered, added, and removed to meet each client’s needs. Sophia enables the Department of Veteran Affairs to benefit from other clients’ practices and suggestions. Sophia is powered by an advanced, role-based permissions system unlike other providers in the industry. Security roles are defined for primary users, researchers, and even outside parties such as attorneys and other agencies. Sophia enables permissions to then be set based on read, create, modify, delete, and confirm across records in the system based on the permission role’s affiliation with the record. Researchers will have the option to submit disclosures and see the status of in-process disclosures.

VA TTP has worked closely with Wellspring to heavily configure VA TTP’s version of Sophia in the cloud, for specific VA workflows and business processes and is the only known FedRAMP-authorized technology transfer KMS on the market. VA TTP sponsored Sophia’s initial FedRAMP ATO, which took more than a year to acquire. The TTP office worked with Wellspring in the past several years to configure the system to meet all of VA needs.

This requirement for the continuation of the Sophia KMS is critical to the VA and the research office to avoid a duplication of efforts, excessive costs, and the possible loss of critical data. Any other company would need to design and develop a new system, and obtain FedRamp authorization. A new developed system is not guaranteed to produce all of the required VA functions. The Sophia software program works extremely well for the VA and the researchers across the country. The VA has already invested in this software. VA research facilities across the country have already had several months of training and years of experience working with this software in this particular context; other suppliers would require months of new training and substantial efforts to verify their understandings of the appropriate reports and protocols. Conducting such training and verifying adequate understanding by other suppliers (other than Wellspring) would place a substantial additional burden on the VA TTP office and on the members of the research team across the country.

The research in progress could be jeopardized causing unacceptable delays and loss of critical data points stored in the Sophia cloud software. The “recoupment cost” associated with the loss of intellectual property data from the VA’s sole Technology Transfer Office’s knowledge management system would be unimaginable. There are more than 8,000 intellectual properties and a conservative estimate of over 100 related documents per each intellectual property consisting of patent, licensing, CRADA, royalty and other information.

Full data recovery would not be possible. Conservative labor hours would be in the 1000’s per year for 4-6 years optimistically. Any downtime, data loss, temporary unavailability of data would put the VA at risk considering the size and complexity of IP portfolio and activities managed through the system. The VA is currently paying to maintain the use of the Wellspring Sophia software service versus hiring a new company to develop and configure new system. Accordingly, Wellspring LLC is the only firm capable of providing the services described in Section III above without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements. Any delays could impact delivering advance technology to Veteran care.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

An SBA search was conducted using NAICS Code 541512 and keywords Knowledge Management System which resulted in 4 results. Information request was sent to 3, Innovatus Technology Consulting, ISSAC, LLC and APSS FUTURISTICS LLC. None of the contractors responded to information request.

Sources Sought Synopsis): A sources sought notice was published under 36C24E24Q0053 on 03/29/2024 and closed on 04/04/2024 and nine (9) companies responded. Four (4) SDVOSBs and five (5) SBs. All of the companies will need to build a new knowledge management system and only one company, SSR International, a SB is FedRamp authorized for software to deliver training courses. All but one company provided capability statements.

Each companies capability statement was reviewed to determine whether they could meet the needs for this requirement. See the below table:

COMPANY SOCIOECONOMIC

STATUS

SAMS UEI COMMENTS/REMARKS

IRONGROVE SDVOSB P4WZBUUZ9K27 Not FedRamp Authorized-this falls into the category of IT company that does not offer a Cloud/SaaS T2 management software product, which is the requirement.

Magnificent Technology

LLC

SDVOSB QVU3DU3NUT28 Not FedRamp Authorized, but will engage with FedRAMP-certified cloud service providers.

They will have to developing a new system from scratch. The VA does not have the funding for a new system to be developed or do any engineering/code changes to an existing system.

Rios Partners SDVOSB EP5NXCGQB6K6 Not FedRamp authorized, this company states they are going to use the Pathfinder software as a shell, which the VA built, and it is not responsive and will not meet the needs for this requirement.

Aurelius Tech and Talent Solutions

SDVOSB EH1WWE7KUFT7 Not FedRamp authorized and will need to develop and build a new system. Stated they will use Microsoft’s cloud-based technologies for FedRamp compliance.

Inteum Company, LLC.

SB J6L1J4KNF7N4 Applying for FedRamp Authorization - four to six months could be longer for FedRamp authorization. Need to configure their system.

DK Shin Laboratories, Inc.

SB Not in SAM and no Dun and Bradstreet number

Received a two-sentence email, an independent software vendor. no capabilities.

Not FedRamp authorized.

SRR

International, Inc

SB VNSNDLBVLK35 There is no mention about T2 software product offering. This appears to be a contractor that provides general IT support and services.

Their FedRamp approved product appears to be software for delivering training courses.

This company would like to maintain and monitor the existing Sophia SaaS solution at the current FedRAMP level. Sophia was developed and owned by Wellspring the incumbent.Contractor.

Lincoln Nelson SB LXKPX9HXK5Z7 Not FedRamp authorized. A new firm. This company would need to build a new KMS.

Malor & Company, Inc.

SB LXKPX9HXK5Z7 Not FedRamp authorized-just general IT and software services. They don't appear to offer a comprehensive T2 management system.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

The proposed pricing will be compared to historical prices paid for the same or similar items.

Projection of the offeror’s cost trends, on the basis of current and historical cost or pricing data will also be considered, along with the comparison of proposed prices with independent Government cost estimates.

The Contracting Officer will negotiate the pricing in the proposal with the Contractor. The CO will work with the Contractor to achieve their best and final offer. The CO will pursue additional discounts to be applied to arrive at fair and reasonable pricing.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

A search was conducted in the VA’s VIP database using NAICS code 541512, product service code DH10, and key words “Sophia", which resulted in no VOSBs or SDVOSBs to meet this requirement. A search was also conducted in the Small Business Administration Dynamic Small Business Search (SBA DSBS) using NAICS code 541512 with keywords

“Knowledge Management System” which resulted in 4 companies. An email was sent to three (3) of the companies, Innovatus Technology Consulting, ISSAC, LLC and APSS FUTURISTICS LLC. None of the contractors responded to the information request.

A sources sought notice was published under 36C24E24Q0053 on 03/29/2024 and closed on 04/04/2024 and nine (9) companies responded. Four (4) SDVOSBs and (5) SBs. All of the companies will need to build a new knowledge management system and only one company, SSR International, a SB is FedRamp authorized for software to deliver training courses. See the results listed in the table in paragraph 6.

Based on our market research, there are not two or more SDVOSBs capable of meeting this requirement. There are many companies that could possibly design a new program that could feasibly meet this requirement. However, due to the complexity of the IT Knowledge Management System (KMS) requirements and TTP’s need for the unique Sophia software, it is not feasible for a different company to build and design a new software system, get FedRamp authorization, meet the end user requirements, and absorb the current Sophia data, with the same data structure, workflows, online submissions, and other configurations. The “recoupment cost” associated with the loss of intellectual property data from the VA’s sole Technology Transfer Office’s knowledge management system would be unimaginable. There are more than 8,000 intellectual properties and a conservative estimate of over 100 related documents per each intellectual property consisting of patent, licensing, CRADA, royalty and other information. Full data recovery would not be possible. Conservative labor hours would be in the 1000’s per year for 4-6 years optimistically. Wellspring Worldwide would be the most cost effective and efficient solution for this requirement. The recommendation is to sole source this requirement to Wellspring Worldwide to avoid loss of data, excessive costs, and unacceptable delays. Delays could impact delivering advance technology to Veteran care.

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition, and soliciting inquiries from interested parties

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

Currently Wellspring Sophia is FedRAMP approved that houses VA’s patent prosecution documentation on invention disclosures. Transferring this data to a new software program poses a potential risk to the VA with loss of critical data and financial consequences.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Wellspring Worldwide Malcolm Mccarry 954 W. Washington Blvd., Suite 750 Chicago, IL 60607 Telephone: 312-820-1140 malcolm.mccarry@wellspring.com www.wellspring.com

Please see the above table in paragraph 6.

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required:

Market research will be conducted on future requirements to survey the industry for qualified vendors. Technology is ever evolving and changing daily, and a new market could exist on future requirements.

Based on past usage, projected future needs, and representation from the TTP staff, VAMC has an ongoing and continuous need for the knowledge management system (KMS) for the next ten (10) years. It is therefore resource judicious and efficient to sole source this requirement once for a five (5) year base period and one five (5) year option period. It is highly beneficial for TTP and the VA to maintain a KMS for a longer period to ensure continuation of services without interruption and to eliminate substantial duplication in costs attributed to data migration, FedRamp authorization, and the integration and customization of software. Also, the additional training of TTP personnel, research representatives from VA Medical Centers across the country, Office of Inspector General (OIG) representatives, patent and marketing firm representative on new software will take time and cause delays to the VA’s technology transfer efforts.

12. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

John Kaplan Date Director, Technology Transfer Program

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Ann Marie Stewart Date Contracting Officer Regional Procurement Office-East R&D

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Seth Custer Date Division Chief

20 May 2024

05/20/2024

5/21/2024

John J. Kaplan 1362427 Digitally signed by John J.

Kaplan 1362427 Date: 2024.05.20 13:31:57 -04'00'

ANN MARIE

STEWART

Digitally signed by ANN MARIE

STEWART

Date: 2024.05.20 13:43:34 -04'00'

SETH CUSTER

Digitally signed by SETH

CUSTER

Date: 2024.05.21 15:46:17 -04'00'

, Regional Procurement Office-East R&D

Regional Procurement Office - East

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.

Gerald F. Jacobs Date Head of Contracting Activity, East

GERALD JACOBS Digitally signed by GERALD JACOBS Date: 2024.06.10 14:21:20 -05'00'