R-PY-Sole Source Justification - DH Tech-Posit - March 2026 - v2-CA-Signed.pdf

JUSTIFICATION FOR

OTHER THAN FULL & OPEN COMPETITION

PROJECT NAME: Posit Licenses and Success Support

This document constitutes the justification and approval for other than full and open competition for the acquisition described herein, under the authority of Section 8(a) of the Small Business Act (SBA), 15 U.S.C. § 637(a) and 41 U.S.0 § 3304(a)(5), and in accordance with FAR 19.805-1(2)(b) and FAR 6.302- 5(b)(4). In accordance with FAR 6-303-2(d), the agency offers the following information as a justification regarding a sole-source 8(a) acquisition.

1. Agency and Contracting Activity Federal Energy Regulatory Commission Office of Enforcement 888 1st Street, N E Washington, DC 20426

FERC is an independent agency headquartered in Washington DC that regulates the interstate transmission of electricity, natural gas, and oil. Within FERC, the Office of the Executive Director (OED) serves the public interest by supporting FERC’s mission. Within OED, the Data Governance Division (DGD) specifically supports FERC’s mission by providing data strategy, governance, project management support, and shared data services across the Commission. DGD seeks to facilitate improved use of data and data-driven decision-making following a data governance and stewardship model.

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

This action will be a Firm Fixed-Price Contract to include software and associated success support with an estimated annual cost of $532,194 for a one (1) year base period with four (4) one-year option periods.

The provider is a HUBZone small business set-aside directed to DH Technologies, LLC (CAGE: 6XKC9), 161 Fort Evans Road NE, Suite 255 Leesburg VA 20176.

3. DESCRIPTION OF REQUIREMENT:

The solicitation proposes to award an Indefinite Quantity Contract (IQC) for:

• Posit Package Manager Advanced

• Posit Connect Advanced - 200 Licenses Package

• Posit Workbench Advanced - 20 Licenses Package

• Posit Success Support

DH Technologies, LLC (CAGE: 6XKC9) is the only HUBZone small business source that is an Posit authorized distributor identified through market research that is capable of providing these part numbers.

The contract will cover a Base Period of one year with four one year option periods for each item. The total estimated dollar value for the base year is $532,194.

FERC seeks a continuation of the software licenses and success support. The licenses are being actively used by FERC staff to serve mission and the potential value to FERC of leveraging the significant staff investment in the creation of analytical tools that integrate directly with Posit is deemed significant. FERC requires Posit’s proprietary service in order to continue to use the tools developed to detect market manipulation and fraud, visualize analytical results, and easily share data products with FERC staff.

The estimated total dollar value for this procurement action is $3,248,994.

4. STATUTORY AUTHORITY:

A sole source HUBZone small business set-aside is justified under 10 USC 2304(c)(5), FAR 6.302-5, authorized or required by statute.

5. DEMONSTRATE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS:

FAR Part 19.1306(a) specify when a sole source HUBZone small business set-aside is appropriate. This acquisition meets those circumstances, as follows:

a. The contracting officer does not have a reasonable expectation that offers would be received from two or more HUBZone small business concerns; Market research identified DH Technologies, LLC as the only HUBZone small business authorized distributor for these items;

b. The anticipated price of the contract, including options, will not exceed $6.5 million for a requirement within the NAICS codes for manufacturing or $4.5 million for a requirement, within any other NAICS code;

the applicable NAICS code is 541519 so the $4.5 million limitation applies. As stated above, the estimated dollar value is $532,194 for the base year;

c. This is a new requirement that is not currently being performed by an 8(a) participant under the provisions of FAR subpart 19.8. No performance by an equal 8(a) participant was identified during market research;

d. The HUBZone small business concern has been determined to be a responsible contractor with respect to performance, DH Technologies, LLC has a history of successful performance on previous contracts for these items;

e. Award can be made at a fair and reasonable price. Cost and Pricing data may not be required if the pricing is in line with previous prices determined reasonable through price competition. Review of FERC’s procurement history indicates that DH Technologies, LLC has received numerous awards for Brand Name or Equal items. Also, the contractor is interested in providing an offer for these items. Based on this, the Contracting Officer has a reasonable expectation that DH Technologies, LLC can supply the items at fair and reasonable prices which will be based on Fair market prices utilizing previous buys with price competition.

6. Efforts to Obtain Competition

IAW FAR Subpart 5.2, the agency will post to www.fbo.gov a notice of intent to award a sole source contract DH Technologies, LLC.

Market research to the extent of identifying various contract vehicles of similar size and scope was performed. Market research identified DH Technologies, LLC as the only HUBZone small business authorized distributor for these items.

7. DETERMINATION OF FAIR & REASONABLE PRICING:

IAW FAR 13.106-3, the pricing was compared to the previous Posit contract. The previous contract consisted of a base year and four, 12-month option periods for a total amount of $2,480,134. The updated requirement pricing provided by the vendor includes reasonable increases for software licenses and support. This change is reflected in the proposed pricing.

The Option Periods include annual license cost increases based on Posit’s available rates. The success support increases at ~8.5% reflecting labor market conditions and similar contract increases that have ranged from 7-10%.

Note that Posit license fees to FERC have been relatively flat since the initial award five years ago.

Pricing is higher, which is considered to be fair and reasonable based on the following:

• Other federal agencies pay approximately the same rates for Posit licenses

• License costs have increased in a similar way to other software solutions procured by FERC

• Dedicated Success Support to facilitate FERC’s adoption and migration to a cloud-based solution

8. DESCRIPTION OF MARKET RESEARCH CONDUCTED & RESULTS:

FERC has completed market research and found multiple resellers of Posit. Specifically, staff identified the following resellers:

• Mango Solutions

• Yotabites LLC

• Daqana

• AgileSoDa

• SHI

• Software One

• Sterling Computers

• Red River

• iiNumbers

• SWNetwork

• LiquidPC

• Compuwave

• Aquion

• GC Micro

• DLT

• Wistek

• Enterprise Technology Solutions

• New Tech Solutions

However, market research identified DH Technologies, LLC as the only HUBZone small business authorized distributor of Posit. FERC staff confirmed that DH Technologies, LLC as the only HUBZone small business authorized distributor with Posit, the developer of the software solution. Further, market research indicated that DH Technologies, LLC pricing was highly competitive. Therefore, the contracting officer recommends against competing the work and awarding the work to DH Technologies, LLC. A HUBZone small business set-aside is justified under 10 USC 2304(c)(5), FAR 6.302-5, authorized by statute.

9. ANY OTHER FACTORS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION:

No long-term adverse impact to competition is anticipated and set-aside will be dissolved if award is not made at a fair market price.

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION.

None

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 SERVICES REQUIRED:

None

12. CERTIFICATIONS & APPROVALS: (Signatures are required)

Technical & Requirements Certification:

I certify that the supporting data under my cognizance that are included in this document are accurate and complete to the best of my knowledge and belief.

Spencer Cummings, Deputy CDO, Data Governance Division 12/15/2025 Insert Name Date

Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date Contracting Officer Acquisition Services Division Office of the Executive Director Federal Energy Regulatory Commission

Date Competition Advocate Acquisition Services Division Office of the Executive Director Federal Energy Regulatory Commission