REDACTED_JA_Web_Methods.pdf

FOR OFFICIAL USE ONLY - PROCUREMENT SENSITIVE - SOURCE SELECTION SENSITIVE

JUSTIFICATION AND AUTHORITY (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION > SAT

Brand Name WebMethods License Renewal and Maintenance

NITYT5RV702

REFERENCES:

6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. (a) Authority. (1) Citations: 10 U.S.C. 2304(c)(1) or 41 U.S.C. 253(c)(1).

DOCUMENTATION:

(1) Requiring Activity :

a. Requesting Activity

DFAS-CL-ZTCBC

1240 E. 9th Street Cleveland, OH 44119 POC is Nancy Bernard 216-204-3064

b. Contracting Activity

DFAS Columbus Contract Services Directorate Building 21, Room 2B218 3990 E. Broad St.

Columbus, OH 43213-1152

(2) Nature and/or description of the action being approved.

The purpose of this document is to obtain necessary approvals for a sole source acquisition in accordance with FAR 6.302-1. Competition is limited to only one responsible manufacturer and no other supplies or services will satisfy agency requirements.

This procurement is for the purchase of WebMethods license renewal and maintenance.

The license renewal comes standard with one year of maintenance which will need to be renewed on a year to year basis.

(3) A description of the supplies or services required to meet the agency’s needs (including the estimated value).

This procurement is for the purchase of WebMethods license renewal and maintenance. DFAS requires maintenance coverage for WebMethods software purchased in prior years in support of DFAS’s Defense Business Management System (DBMS). DBMS provides a standard DoD Working Capital Fund accounting system that consolidates, standardizes, simplifies and improves automated support for its DoD agencies customers. DBMS is an integrated resource management system used by the Defense Agencies. DBMS is comprised of three subsystems: (1) Appropriation Accounting Subsystem and (2) Resource Administration Subsystem on the mainframe and (3) Automated Billing System

(ABS) on the Mid-Tier. DBMS uses WebMethods as the processing tool for file interfaces on a separate mid-tier server that flows into the DBMS ABS Mid-tier server and DBMS Mainframe.

The contract will include a base year plus two option periods. The first option period, estimated at $120,053.68, is from 2/28/16 to 2/27/17. The second option period, estimated at $105,261.09, is from 2/28/17 until 12/31/17. The estimated cost of this procurement is $118,236.67 for the base year and $225,314.77 combined total for two option periods. The total cost of this contract is estimated at $343,551.44.

(4) An identification of the authority permitting o ther than full and open competition.

10 U.S.C. 2304(c) authorizes the Department of Defense (DoD) to contract without full and open competition under certain circumstances. For this acquisition, other than full and open competition is permitted per FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services will satisfy Agency Requirements.

(5) Reason that this procurement is limited to the product of one manufacturer

WebMethods is the DBMS file processing tool for the mid-tier server. It is the key component that inputs files received from DBMS interface partners and to send out requested outbound files. The use of the WebMethods processing tool withing the DBMS supports the Defense Agencies: Defense Commissary Agency (DeCA), Defense Contract Audit Agency (DCAA), Defense Human Resource Activity (DHRA) - includes DoD Civilian Personnel Management Service (CPMS), Employer Support of the Guard and Reserve (ESGR) and Defense Manpower Data Center (DMDC), Defense Contract Management Agency (DCMA), Defense Microelectronics Activity (DMEA) to account for appropriated funds which includes funds control, job order accounting, financial reporting, reimbursable billing system, and a cost accounting system. The purchase of the critical component WebMethods ensures continuity of operations for DFAS.

Currently, Immix Technology is the only known reseller of WebMethod products and holds proprietary rights to the product.

In total, DFAS has invested over $1.3 million for the purchase and renewal of licenses and maintenance. WebMethods software initial purchase was in 2008 for $250,000 and was renewed for the next 4 years at $250,000 per year. Current year contract cost is $111,943.58.

Replacing WebMethods would require a complete rewrite and full regression testing of all DBMS mid-tier file interface programs. DFAS developed custom program packages for DBMS using the WebMethods COTS developer tool beginning in 2007. The original effort to convert the file interface system (Information Exchange, INX) used by DBMS from Aida code to WebMethods took several years with a staff of multiple programmers and functional analysts. The effort to convert existing WebMethods code to another program language would require analysis of other options, possible acquisition of other tools and or hardware, analysis of programs, rewrite and testing. The estimated cost to add a new interface processing tool to DBMS would be $744, 408 for labor (four programmers at 1960 hours per programmer at a $94.95 per hour rate) and $250,000 for software, licenses and maintenance. DBMS system will be decommissioned by December 2017 as customer agencies migrate to DAI ERP. Given the phase out timeline and limited personnel for DBMS, it is not practical to invest the time and money to change platforms by December 2017.

(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.

This is a sole source requirement, for reasons stated in paragraph 5 above. DFAS will post this justification and approval within 14 days after contract award as required by FAR 6.305(a).

(7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The following is a high-level Government cost estimate: $118,236.67 for a period of performance of 28 February 2015 to 27 February 2016 with two additional option period for a total estimate at $343,551.44. In determining a fair and reasonable price, the Contracting Officer will evaluate a more detailed breakdown from a formal Independent Government Cost Estimate (IGCE).

(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 for the purpose of seeking as many potential sources as possible. Immix Technologies is the only reseller provider of the product. The products were not available on ESI or NASA SEWP. Not all items are available on GSA by Immix Technology.

The following sources were contacted for pricing and availability information:

Immix Technology

(9) Any other facts supporting the use of other than full and open competition, such as:

Nothing to add to this section that has not already been articulated within this justification document.

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

Immix Technology

(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.

This solicitation will be publicized in accordance with FAR Part 5.2 in the interest of locating additional sources.

CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.

Requiring Activity/Program Management Office Certif ication

Printed Name:____ Nancy Bernard

Title System Manager Org. Code ____ZTCBC__________________________

Signature Phone 216-204-3064 Date_________

Contracting Officer Certification I hereby determine that the anticipated cost for this contract action will be fair and reasonable. I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Printed Name: Stephanie Smith

Title Contracting Officer Organization Code DFAS/CSD-CO/ZECAB

Signature_________________________ Phone 614-701-2787 Date_________

REVIEW FOR LEGAL SUFFICIENCY

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