P42 Brand Source Justification Narrative- Azure License_Narrative updated_Redacted.pdf

U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)

Brand Source Justification – Azure License

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY

for JUSTIFICATION for BRAND SOURCE SELECTION

Agency: U.S. Department of Housing and Urban Development (HUD) 451 7th Street, SW Rm 5256 Washington, DC 20410

Contracting Activity: Office of Chief Procurement Officer, Headquarters Program Office: Office of the Chief Information Officer (OCIO)

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED.

A competitive Task Order on NASA SEWP using Brand Name only is being requested for the purchasing of Azure License to support Office of the Chief Information Officer

Method of Contracting: New Task Order Type of Contract: Firm Fixed Price Type of Funds: This contract action will be funded with FY 2026 IT Funds.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS (INCLUDING THE ESTIMATED VALUE).

The U.S. Department of Housing and Urban Development (HUD) Office of the Chief Information Officer (OCIO) requires Azure licenses to maintain and expand its cloud-based infrastructure, supporting secure hosting, data storage, application modernization, and continuity of operations. HUD has a need for Microsoft Azure licenses and subscriptions to support organizational cloud services and operations. It includes all Azure-based resources provisioned under the organization’s tenant, ensuring proper licensing compliance, cost optimization, and alignment with business and technical requirements.

Period of Performance: POP is 12 months from award of contract.

Estimated Total Dollar Value:

Task QTY. Unit Price Total Microsoft Azure

Cloud (6QK-00001)

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING

OTHER THAN FULL AND OPEN COMPETITION.

FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

The Office of the Chief Information Officer (OCIO) identified based on market research, Microsoft Azure is the only product that meets HUD's requirements without substantial cost, schedule, and operational risk. No other cloud platform can be modified to meet the Department's needs in a manner that is technically feasible and economically practical. Three NASA SEWP contract holders have been identified as authorized Government resellers of this product.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies.

Market research efforts included a targeted search of small businesses using the NASA SEWP Government-Wide Acquisition Contract (GWAC), with a specific focus on identifying authorized resellers capable of providing Microsoft Azure licensing and related services.

7. A determination by the contracting officer that the anticipated cost to the

Government will be fair and reasonable.

The Contracting Officer will conduct Price Analysis in response to the solicitation issued on NASA SEWP, against the proposals received and will be compared to the Government’s Estimate. The subsequent award will be made to the proposal the meets the technical requirements and that is fair and reasonable to the Government.

8. A description of the market research conducted (see part 10) and the results or a statement of the reason market research was not conducted.

Market research was conducted and three NASA SEWP contract holders capable of meeting the Azure requirements have been identifed. The market research allowed 127 NASA SEWP contract holders to submit capability statements for interest in meeting HUD’s requirement for Azure.

9. Any other facts supporting the use of other than full and open competition, such as: N/A

(i) Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available.

(ii) When 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

(iii) When 6.302-2 is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

HUD currently has no barriers that limit or restrict consideration for any subsequent awards.

Additionally, HUD will continue to utilize Market Research to determine other viable vendors that can offer the capabilities of the Azure capabilities.

12. Contracting officer certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

See Contracting Officer’s certification at Part 2-Justification for Sole Source or Brand Name Under Simplified Procedures for Certain Commercial Items