P03 NetEx justification signed 2_Redacted.pdf

NetEx Software Maintenance VA-20-00078608/VA-20-00078605

JUSTIFICATION

FOR AN EXCEPTION TO FAIR OPPORTUNITY

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

Office of Procurement, Acquisition, and Logistics Technology Acquisition Center

1701 Directors Blvd Austin, TX 78744

2. Description of Action: The proposed action is for a firm-fixed price delivery order to be issued under the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V Government-Wide Acquisition Contract (GWAC) for brand name NetEx software licenses, maintenance, and support.

3. Description of the Supplies or Services: The proposed action is for three (3) brand name NetEx perpetual software licenses and associated software maintenance and support and for continued maintenance and support of VA’s three (3) existing brand name NetEx perpetual software licenses. The NetEx software is utilized for Bulk File & Print transfers between Bull and International Business Machines (IBM) systems to ensure Veteran entitlement payments are not interrupted. The Veterans Benefits Administration (VBA) relies on this data transfer protocol functionality to support the Benefits Delivery Network (BDN) Payment System to ensure that benefits entitlement payments are paid to the Veteran from the Treasury. The NetEx software utilizes a direct, point to point, network connection that allows for data transfer communication between the existing IBM Z Series Operating System (z/OS) and the Bull Groupe General Comprehensive Operating System (GCOS). The NetEx software is installed on the Bull GCOS located in the Philadelphia Information Technology Center (PITC) Disaster Recover site. The IBM z/OS is located at three data centers (PITC, Hines Information Technology Center (HITC), and Austin Information Technology Center (AITC)). The current connection between the HITC to the Bull GCOS at the PITC does not require encryption. VA’s now requires requiresa data connection to provide data encryption capabilities between PITC and AITC. This procurement will enable encrypted data transport within the IBM z/OS mainframe (located in AITC) and Bull GCOS mainframe (located in PITC). The data transport will utilize existing Linux servers at AITC to encrypt and decrypt the data on behalf of the Bull GCOS mainframe. VA will install the three (3) NetEx perpetual software licenses on the Bull GCOS mainframe to support the three data centers where the IBM z/OS mainframes are currently installed.

Maintenance shall include all software patches, updates, and fixes. Support shall be provided via telephone and email. Telephone support will beavailable from 0600hrs to 1700hrs CT, Monday through Friday. Email support to request and resolve problems will provide a tracking mechanism for all Phone and Email requests. The period of performance will include a base year from October 1, 2020 through September 30, 2021, and two 12-month option periods. The total estimated price of the proposed action is (inclusive of options).

4. Statutory Authority: Pursuant to Federal Acquisition Regulation (FAR) 16.505(a)(4), the following brand name requirement is being justified and approved as an exception to fair opportunity under the statutory authority of Section 41 U.S.C. 4106(c)(2) as implemented by FAR 16.505(b)(2)(i)(B), entitled “Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.”

5. Rationale Supporting Use of Authority Cited Above: Only NetEx software is capable of seamlessly interoperating with the IBM z/OS and Bull GCOS to provide data Bulk File & Print transfers between the two existing mainframe infrastructures to allow for encryption between locations. NetEx software is a foundational component that enables the VBA to transfer critical data that makes communication possible between Veterans and staff via a high-speed link used to submit or receive benefits. A vast majority of the VBA business lines Veteran entitlement applications have been specifically written to support the NetEx software code and routines. By supplementing the current NetEx software infrastructure, VA will be able to encrypt the data transferred to each location without installing an entirely new software. The use of any other brand name software would require procurement of a replacement software as no other software is interoperable with the current NetEx software infrastructure. Additionally, the use of any alternative software would require a major rewrite of various in-house applications, such as the BND Payment System. Specifically, these duplicated development efforts include rewriting large sets of Job Control Language, rewriting thousands of lines of code, and rewriting other stored procedures that utilize NetEx processes. These efforts would result in delivery delays of at least 12 months and at least $10M in duplicated development costs to allow a replacement software to interoperate with the various VBA systems. These estimates are based on historical data and procurement history for similar efforts. Additionally, if the NetEx software were to not be renewed or maintained, it would result in a significant risk to VA and the Veteran recipients of entitlement payments, specifically in respect to the security of their data and timeliness of receiving their benefits. Finally, no other source can provide NetEx software maintenance due to the proprietary nature of the software and the need for access to NetEx’s proprietary code base. Access to the NetEx proprietary code is required to ensure all services provided are properly configured.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in section 8 of this justification. This effort did not yield any additional sources that could meet the Government's requirements. However, the undersigned VA technical representative determined that limited competition is available among authorized resellers for brand name NetEx software maintenance. In accordance with FAR 16.505(a)(4)(iii)(A)(1), this justification will be provided with the solicitation to all appropriate NASA SEWP V GWAC holders. Furthermore, in accordance with FAR 5.301, 16.505(b)(2)(ii)(D), and 16.505(a)(4)(iii), the award notice for this action will be synopsized on the Contract Opportunities website and this justification will be made publicly available within 14 days of award.

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

8. Market Research: Market research was conducted via web-based research in May 2020. Government's technical experts reviewed similar software products/services such as those offered by Software Diversified Services, MyAirbridge.com, and filemail.com, to ascertain if these items could meet VA's requirements. Upon review, it was determined that the products and services researched were unable to meet the interoperability requirements based on the existing infrastructure. The services provided by these companies also could not be utilized on the existing NetEx software due to the proprietary constraints. As a result of the market research the technical experts confirmed that only NetEx or an authorized reseller can provide the necessary software, software maintenance, and support for NetEx software because of the proprietary source code required. No other source is capable of developing and issuing software updates and fixes for NetEx software. Based on the above, only NetEx software licenses, maintenance, and support meets all of the Government's requirements.

Market research was conducted by the Contract Specialist in July 2020 through NASA SEWP market research tool. This market research indicated that the required brand name NetEx software, software maintenance and support is offered by several Service- Disabled Veteran Owned Small Business contract holders. As a result, there is reasonable expectation that limited competition exists on the NASA SEWP V GWAC for the brand name NetEx products and services.

9. Other Facts: None