P03JASAS Software Redacted.pdf

SAS Software and Support VA-21-00000452

LIMITED-SOURCES JUSTIFICATION

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Procurement, Acquisition, and Logistics Acquisition Center 1701 Directors Blvd

Austin, TX 78744

2. Description of Action: The proposed action is for a 12-month firm-fixed price task order, with an option for three 12-months terms for the acquisition of brand name

Statistical Analytical Services (SAS) Visual Analytics software, software maintenance, and consulting services. This effort is being conducted under the authority of the

Multiple Award Schedule Program; the proposed effort will be awarded under the

General Services Administration (GSA) Federal Supply Schedule (FSS) GS-35F-0170K to EIS LLC, 6901 Rockledge Drive, Suite 600, Bethesda, MD 20817.

3. Description of the Supplies or Services: VA Financial Service Center (FSC) has a requirement to procure maintenance for existing SAS Cost and Profitability

Management (CPM) perpetual software licenses, 1 brand name SAS Visual Analytics perpetual software license, and brand name SAS consulting services. SAS CPM software is a cost accounting software that allows end users to track cost of activities and transactions across an organization, assign cost to multiple dimensions (i.e., product lines, organizations, services), produce reports, and evaluate the impact of costs on profitability. VA requires annual software maintenance for the SAS CPM perpetual licenses, which provides new functionality and fixes for known problems. Also included in this maintenance is technical support which provides telephone, e-mail, fax, and web support between the hours of 6:00AM through 6:00PM, Central Standard

Time, Monday through Friday. SAS Visual Analytics software provides capability for extensive reporting and analytics on a user-friendly graphical user interface application.

This will allow FSC cost accountants and budget analysts to produce analyses and distribute reports without the need of IT support. The consulting services are required to improve FSC's current and future SAS CPM cost accounting models, which includes cost accounting for additional Franchise Fund Enterprise Centers within VA. The primary focus of these services will be to make recommendations on the improvement of current cost account model designs, cost allocations, and reports. This shall include

6,250 hours annually of consulting from an SAS Principal Consultant. Approximately

300 of these hours are to be performed on-site at the FSC in Austin, TX, with 5,950 hours provided through virtual meetings, email support, and conference calls. The period of performance consists of a 12-month base period, with three 12-month option periods for continued maintenance and support, and optional tasks to procure additional perpetual licenses of the existing SAS CP Management software licenses. The optional items include up to five “Additional 1 Power User” licenses and up to two “Additional 5

User Pack”. The total estimated value of the proposed action is $6,241,507.00, inclusive of all optional tasks and option periods.

4. Authority: This acquisition is conducted under the authority of the Multiple-Award

Schedule Program. The specific authority providing for a limited source award is

Federal Acquisition Regulation (FAR) 8.405-6(a)(1)(i)(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.”

5. Rationale Supporting Use of Authority Cited Above: EIS is the exclusive reseller of SAS products and services as detailed in the market research section. FSC currently owns a version of the SAS Activity-Based Management suite application and it is an integral part of FSC's cost accounting business operations. Only SAS offers an integrated suite of analytics software that provides the interoperability and compatibility with the current FSC environment. The SAS CPM suite includes SAS Data Integration

Studio, SAS Management Console, SAS Enterprise Guide, and SAS Visual Analytics.

FSC does not currently own Visual Analytics, but is adding a perpetual license to expand the existing SAS suite. The Visual Analytics software license will allow for reports generated to be understood in the format of a visual, interactive dashboard that can be easily navigated by FSC leadership to understand profit and loss variances and associated root causes. No other brand software is compatible with the existing suite of

SAS products already in use at FSC.

In addition, only SAS or a reseller can provide the required software maintenance and technical support because of the propriety source code required to develop and implement software updates and upgrades. No other source is capable of providing the required software maintenance that meets VA's unique functional requirements.

Without access to this code, maintenance and support services provided on the software would not be properly configured and render the software inoperable.

Additionally, procurement of a new software product, rather than renewing maintenance of existing SAS CPM software licenses, would not be compatible with the existing infrastructure. VA requires this software to be interoperable and compatible with the existing infrastructure protocols and functionality for continued operational availability.

Use of any other brand name software would not communicate with the existing infrastructure due to the proprietary data constraints. FSC requires all the software to integrate into a seamless interface. Other commercial off-the-shelf software products are not designed to integrate into a seamless interface with SAS software.

VA also requires operational consulting services in order to improve FSC's current and future SAS CPM cost accounting models, which includes cost-accounting for additional

Franchise Fund Enterprise Centers within VA. The primary focus of these services will be to make recommendations on the improvement of current cost account model designs, cost allocations, and reports. This requirement can only be provided by the

Original Software Developer (OSD) or its reseller, as these sources are the only ones with the requisite knowledge of the SAS CPM software suite. Therefore, no other vendor can perform the required consulting services.

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. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 8.405-

6(a)(2) the award notice for this action will be synopsized on the Federal Business

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 marketplace that would enable future actions to be competed. Specifically, the Government will continue to investigate alternatives to SAS CPM software suite and services that may provide the required capabilities, or whether SAS permits future third party access to its proprietary software to provide the required maintenance and support.

8. Market Research: The Government's technical experts performed market research in July-August 2020 by researching other similar software and support that could be used and to ascertain if there are other sources that could meet VA's requirements, including the following: SAP BusinessObjects Profitability and Cost

Management; Oracle Activity-Based Management (ABM); and QPR Cost Control Cost

Perform. The research revealed that none of the vendors can offer maintenance that is compatible with the existing SAS software already installed at FSC. In addition, the required perpetual license is an expansion of the current suite of products. While the other products have similar capabilities, no other software will be compatible with the existing suite of SAS products currently deployed at FSC. In addition, the source code required to provide the technical services is proprietary to SAS. Therefore, no other contractor has the capability of providing the technical services.

Additionally, the Contract Specialist contacted SAS by phone and email in August 2020 and received an email confirming that it only conducts business with the Federal

Government through its only authorized reseller, EIS, a small business, under its GSA

FSS contract. EIS was also contacted in August 2020 and spoke to a representative who confirmed that the required software and support can only be purchased on its

GSA FSS 70 contract. Based on the market research, it was determined that only EIS can meet all the Governments requirements.

9. Other Facts: None.

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.

Rachael Petteys Date: _____________________

Program Manager 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 because GSA prices have previously been determined fair and reasonable.

Additionally, price competition is expected among resellers for this action. Additional price analysis may be performed in accordance with FAR 15.404-1(b).

Ty Senour 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.

Ty Senour Date: _________________

Procuring Contracting Officer Signature: __________________

Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition of brand name SAS Visual Analytics software, software maintenance and consulting services on an other than fair opportunity basis pursuant to the authority cited in Section 4 above, subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Date: ____________ Signature: _________________________________

Philip Weckesser

Advocate for Competition

Technology Acquisition Center

Office of Procurement, Acquisition, and Logistics