Redacted Justification RS Means Online Subscription Final.pdf

RS Means Online

52100PR240000012

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 u.s.c. § 3204

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) 13.501(a)(2) (incorporating the format of FAR 6.303-2), the following facts and rationale justify the use of such authority:

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Shore Infrastructure Logistics Center (SILC), Business Information Services Branch (BISB) prepared this justification for other than full and open competition.

2. Nature and/or Description of the Action being Approved.

(a) Nature of the action: The SILC BISB requests approval to solicit and award, on a sole source basis, a Stand-Alone contract for Gordian RS Means Online subscription with option for use at SILC and Civil Engineering Units (CEU). The Original Equipment Manufacturer (OEM) for the software is The Gordian Group, INC.

(b) Name and address of the contractor: The Gordian Group, Inc.

30 Patewood DR STE 350, Greenville, South Carolina 29615-6810

( c) Type of action: Firmed-fixed priced Stand-Alone contract, consisting of a one-year Base period of performance with four option years for the identified software licenses.

(d) Estimated total value (including options):

Period Unit Price

Base Year 12mo.

Option Year 1 12mo.

Option Year 2 12mo.

Option Year 3 12mo.

Option Year 4 12mo.

( e) Type of funding: Operations and Support funds.

(t) Year of funding: Fiscal Year 2024

Total

(g) Solicitation number: 70Z08424QDL950006

(h) Background information about the requirement: The USCG intends to award a firm fixed priced Stand-Alone contract, consisting of one (1) year and (4) option years to The Gordian Group, Inc. (hereinafter "Gordian") manufacturer of the software, RS Means. This requirement is considered commercial in nature and will be procured utilizing the procedures established under FAR Part 12, Acquisition of Commercial Items in conjunction with FAR Subpart 13.5, Simplified Acquisition Procedures for Commercial Items.

This request is for the approval of a sole-sourced procurement to provide access to RS Means Online (RSMO) Master Union Package for Core users and Complete users. Subscriptions will be for one year from the date of award of each line item. RS Means Online is used to perform Independent Government Estimates (IGE) for construction projects. It is used to calculate construction and restoration costs. It is also used to produce cost estimates for engineering and construction contract modifications. This is the same data that our contracts mandate contractors to use when preparing their quotes/bids. The stand-alone and online based versions provide the same data.

Core users require the following:

• RS Means Cost Data (national and locality-based)

• Unit costs

• Current year costs

• Estimate Creation

• Ability to export estimate to Excel

Complete users require the following :

• Core Requirements

• Assembly and SF model costs

For both Core and Complete users, the following cost datasets are required:

Building Construction:

• Mechanical Electrical Plumbing

• Site Work & Masonry (including landscaping and concrete)

• Heavy Interior Costs

3. Description of Supplies/Services.

RS Means Software is required for the development of Independent Government Estimates (IGE). RS Means provides updated quarterly construction cost data by The Gordian Group, Inc which is the most common source for construction costs throughout the industry. Gordian is the sole provider of RS Means Online, allowing for estimators to create estimates and export them in a file which can be shared.

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition. The statutory authority permitting other than full and open competition is 41 U.S.C. § 1901(e)(2) as implemented by FAR 13.501(a), Sole Source (including brand name) acquisitions.

5. Identification of Exception to the Buy American Act.

The software license identified in this procurement is exempt from the Buy American Act in accordance with FAR 25.103 (e).

6. Demonstration that the Proposed Contractor's Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

RS Means is a widely recognized cost estimating software that provides a comprehensive database of construction costs, including labor, materials, equipment, and more, which meets Shore Infrastructure Logistics Center (SILC) requirements for cost estimating. Other cost estimating software researched did not indicate that labor and equipment cost was included in its cost estimating software. RS Means Online covers a wide range of civil engineering projects and is known for its accuracy and reliability. The intent is for both the Government and the Contractor to utilize the same published ( catalog) cost and pricing information from the same database in preparing procurement packages. In addition, the RS Means Online is used as an estimating tool by the contractor and the Government to establish fair and reasonable costs for modifying MILCON and O&M contract projects.

RS Means data provided by Gordian is the most common source for construction costs throughout the industry. Gordian is the sole provider of RS Means Online, allowing for estimators to create estimates and export them in a file which can be shared.

Gordian sells RS Means data to third party contractors who utilize it for their cost estimating platforms; however, these third-party contractors play no role in the development of the RS Means data.

RS Means Online demonstrations has recently been conducted to ensure it meets our needs. SILC requires its project engineers and contractors to utilize RS Means data for specific contract actions to ensure that a fair and reasonable price is negotiated for construction projects.

(a) The use of 41 U.S.C. 1901 is necessary because Gordian is the software OEM and only USCG-approved source for this requirement.

(b) The RS Means Database is necessary to ensure users receive crucial up to date material and labor cost. Failure to obtain this software could potentially cause RS Means users the inability to get crucial cost data and the inability to monitor current construction costs. Gordian is the proprietary owner of RS Means and is the only provider of the licenses and accompanying maintenance.

( c) Alternative sources could not be considered due to Gordian being the software OEM and only USCG approved source for the identified software license.

(d) Currently some Civil Engineering Units (CEU) and Facility Design and Construction Centers (FD&CC) use RS Means Online but those individual units pay via unit funds from their respective units' construction and projects budgets. To avoid these costs to individual units for RS Means Online, SILC plans to purchase twenty subscriptions to have available to the field for cost estimating as a service-wide construction software tool. This is necessary to promote uniformity and efficiency throughout the service and to include CEUs & FD&CCs which would not otherwise be able to purchase RS Means Online subscriptions from their Construction budgets.

(e) The exemption at FAR 51.203(b)(2) is not taken.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

(a) This procurement was forecasted in the DHS Acquisition Planning Forecast System (APFS) No. P202406489 l. There were no inquiries received in response to the published APFS.

(b) In accordance with FAR 5.230(a)(2), the proposed contract action will be advertised on the Contract Opportunities at sam.gov as a sole source combined synopsis solicitation. The estimated date of publication 29 April 2024.

(c) The exceptions under FA 5.202 do not apply to this requirement.

( d) The exceptions under FAR 6.305 do not apply to this requirement.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer anticipates that prices for this procurement will be determined fair and reasonable based on comparison to previous prices paid (FAR Subpart 13 .106- 3( a)(2)(ii) ), comparison to the Independent Government Cost Estimate (IGCE) (FAR Subpart 13.106-3(a)(2)(vi)), and to similar services in a related industry (FAR Subpart 13. 1 6-3(a)(2)(iv)).

9. Description of Market Research.

(a) Market research was conducted from January through April 2024. A sources sought notice was posted on GSA E-buy and Sam.gov. Two responses were received: The Gordian Group, Inc. and Exclusive IT Tech. Exclusive IT Tech submitted a technical capability statement offering to buy the RS Means software and provide it to the USCG through a third-party purchase. The Contract Specialist reached out to RS Means to determine if they allowed third party vendors to resell their software and informed the KS that no third-party selling was allowed and they offer the software as a sole-source for military branches. Gordian's representative sent an email confirming no third-party selling as well as documentation supporting sole source purchases to government entities. It is beneficial to the USCG to issue this requirement as sole-source due to the proprietary nature of Gordian's software license. After conducting market research, it was determined that this requirement shall be posted as sole source to Gordian.

(b) This J&A requirement does not include the exceptions FAR 25 .103(b )(2) or FAR 25.202(a)(2) for the Buy American Act.

( c) Market research has been conducted.

(d) This requirement does have patents, copyrights and/or intellectual property.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

(a) The USCG does not own the necessary technical data required to support the RS Means data supplied via the software in this requirement. The technical data is proprietary and available only from the OEM.

(b) The software to satisfy the USCG's requirement is maintained by Gordian as proprietary data, un-releasable to any third party without expressed written permission from Gordian.

(c)

11. A Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the

Acquisition.

IA W with FAR Part 5 .2, a combined synopsis solicitation will be posted on the GPE website www.SAM.gov, upon approval of this document. The combined synopsis/solicitation will state the Government's intent to award one contract with firm fixed pricing on a sole source basis to The Gordian Group, Inc for RS Means Online Software utilizing FAR part 12 and FAR subpart 13 .5. All responsible sources may submit a capability statement, proposal or quotation, which shall be considered.

12. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required Absent unrestricted access to the RS Means Online Software, there is little the USCG can do at this point to foster additional competition. Gordian was contacted via email during the market research phase and was asked if Gordian was a sole-source provider of RS Means Online. Gordian responded with a letter stating that Gordian is the only authorized supplier of RS Means Online at this time. There are no actions the USCG can take to remove or overcome barriers to competition for this requirement. The USCG will continue to conduct market research and contact Gordian to ensure that RS Means Online is a sole source requirement.

13. Contracting Officer's Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

BLACKWELL.JENN I FER.R o;g;tally ,;gned by

BLACKWELLJENNIFER.RENEE.1556115342

ENEE.1556115342 Datec 2024.04.1210,18'44-04'00'

Jennifer Blackwell Contracting Officer

14. TechnicaVRequirements Personnel Certification.

Date

I certify that this requirement meets the Government's minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.

BARKLEY.CEDRIC.DARRYL.1044451898 ~~~~i;~•.:.~,bi:::~~.~:RJCDARRYL.t0444S1B9S

Cederic Barkley Technical Representative

Date