Redacted LSJ.pdf

Controlled Unclassified Information

Source Selection Information -- See FAR 2.101 and 3.104

DEFENSE LOGISTICS AGENCY (DLA)

DLA CONTRACTING SERVICES OFFICE-PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PA 19111-5092

LIMITED SOURCE JUSTIFICATION

(For Acquisition Conducted Under the Authority of the Multiple Award Schedule Program)

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

Agency Requiring Activity:

Defense Logistics Agency (DLA) Information Operations J62K 8725 John J. Kingman Rd Fort Belvoir, VA 22060

Contracting Activity:

DLA Contracting Service Office-Philadelphia (DCSO-P) 700 Robbins Avenue Philadelphia, PA 19111-5092

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

In accordance with FAR 8.405-6, this limited source justification authorizes and approves the award of a task order modification to the current task order SP4701-20-F- 0209 awarded to Carahsoft Technology Corp. (Carahsoft) in support of the Enterprise Resource Planning (ERP) Program. The Period of Performance and Total Dollar Value of the current task order are as follows:

Period of Performance: September 29, 2020, to September 28, 2022 Total Dollar Value: $170,721,649.00

Controlled by: DLA DCSO Philadelphia CUI Category: General Procurement and Acquisition/ Source Selection Information see FAR 2.101 & 3.104

Distribution/Dissemination Controls: DISPLAY ONLY

POC:

The modification will have two parts: (1) to extend the Period of Performance for Task 1 (Option Period 1) by 3 months, and (2) to add a concurrent 12 months of performance for an additional non-SAP Enterprise Data Warehouse (EDW) support (to include increases to the Cloud Hosting and Licensing, managed services and Infrastructure-as-a- Service (IaaS) as described in Task 3 Attachment D of the original task order) .. The additional servers to be provisioned are in support of EDW Non-SAP applications and are described under Task 4.

The Task Order SP4701-20-F-0209 was competitively awarded to Carahsoft on September 29, 2020 to provide technical and program management Services with the necessary SAP expertise to assist and conduct platform configuration development to migrate DLA ERP applications from the Defense Information Systems Agency (DISA) to commercial cloud hosting and managed services. The migration efforts were planned for 14 months (12-month base and 2 months in Option Period 1); the extension will update the migration efforts under Option 1, Period of Performance from 2 months to 5 months. The original requirement also included cloud hosting and licensing to support the new system, which will be increased to account for the SAS Viya requirement, as discussed below. The resultant order was placed against a General Services Administration (GSA) Federal Supply Schedule (FSS) Multiple Award Schedule contract and used Department of Defense Enterprise Software Initiative (ESI) agreements.

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

THE AGENCY'S NEEDS/ESTIMATED DOLLAR AMOUNT:

DLA has a requirement to modify the current contract to add three (3) additional months to Task 1 and add Task 4 for support infrastructure for additional EDW Non-SAP resources. In order for the vendor to complete the work required in the modification in accordance with the current schedule, they needed delivery from the government of the Data Sync Servers by May 10, 2021. Due to unanticipated configuration issues with DISA, the Government was unable to deliver the Data Sync Servers until July 31, 2021. Prior to delivery of the Servers, the vendor participated in the root cause analysis for resolution of these configuration issues. It was a team effort to help the government determine and troubleshoot the issues. After delivery of the Servers, the contractor’s program management focus shifted back to overseeing the migration to the cloud environment, which is critical to DLA’s ERP migration effort. In addition, work cannot be completed during the two-week year-end blackout period, therefore the period of performance for Task 1 needs to be extended by three (3) months to ensure successful migration without production downtime.

DLA further requires ERP support to include the Cloud Hosting and Licensing, managed services and Infrastructure-as-a-Service (IaaS) to support the additional servers to be provisioned in support of EDW Non-SAP applications. As part of this requirement, Carahsoft will provision additional servers and storage and provide managed services for DLA’s existing ERP applications. The managed services involve Carahsoft directly working with the cloud service provider and DLA. Additionally, Carahsoft will be providing the licensing, as well as providing platform as a service for the SAP applications and infrastructure as a service for the non-SAP applications. Carahsoft shall provide managed services for all DLA ERP Cloud environments to include SAP and Non-SAP applications. Licensing associated with Non-SAP applications (ex. SAS Viya) will be provided by DLA unless otherwise indicated.

The current requirements under Option Period 1 with the dollar values are listed below:

Option Period 1:

CLIN 1001 – Task 1 – Program Management, Administration, and Technical Services: 2 months – Total Dollar Value: $5,311,542.86 CLIN 1002 – Task 3 – Cloud Hosting and Licensing: 12 months – Total Dollar Value:

$85,836,387.24

CLIN 1003 – Travel Time and Materials: NTE $343,947.00

Total Option Period 1 to date: $91,491,877.10

The estimated dollar value for this modification is as follows:

Option Period 1:

CLIN 1004 – Task 1 – Program Management, Administration and Technical Services: 3 months – Total Estimated Dollar Value of

CLIN 1005 – Task 4 – Cloud Hosting and Licensing: 12 months - Total estimated dollar value of

TOTAL estimated increase under this modification =

With this modification, the total dollar value

4. THE AUTHORITY AND SUPPORTING RATIONALE AND, IF APPLICABLE, A

DEMONSTRATION OF THE PROPOSED CONTRACTOR'S UNIQUE

QUALIFICATIONS TO PROVIDE THE REQUIRED SUPPLY OR SERVICE:

The authority permitting other than full and open competition is FAR 8.405-6(a)(1)(B), “only one source is capable of providing the required services.” Only one source is capable of providing the required services under this requirement without a loss of continuity and at the necessary level of quality in the required timeframe. Carahsoft is the only vendor who has the clearances and expertise with the program, required interfaces, software, and the infrastructure to ensure a successful implementation. It would take an estimated 3 months to have another vendor obtain the clearances required and the expertise to perform the tasks under SP4701-20-F-0209. A vendor would need at least 30 days to find personnel, interview, obtain clearance and CAC cards, and have a 2875 SAAR Form processed and have their accounts associated with ERP through AMPS. They would also need VDI access and a LAN account in order to get into the system. A vendor would need at least 90 days after they receive an account to have a kickoff meeting, project onboarding, system overview and learn where Carahsoft left off in order to pick up the project at its current point.

The original task order only accounted for the SAS Grid Cloud Hosting. The modification task 4 will add the new resources necessary for the SAS Viya Cloud Hosting t. This mod is adding the addition servers so both can operate in parallel as we move from Grid to Viya in the cloud. SAS is part of EDW and is one of DLA’s mission critical systems. SAS, as an Enterprise application, currently provides over 500 DLA users, comprising DLA’s analytical community, the ability to perform queries and advanced analytics against EDW HANA and other systems/ data sources. This allows DLA to gauge supply chain/demand chain performance and conduct historical trend analysis for educated decision-making by providing the ability to examine large data sets and return actionable data within a reasonable timeframe. The reoccurring reports, operations research, and ad hoc requests are required for daily tasks such as prioritization of Buyer and CAS workloads throughout the Enterprise.

SAS Viya is the replacement to SAS Grid, which is quickly approaching end of support from the manufacturer. Since SAS grid is approaching end of life, Viya is where updated functionality required by the Artificial Machine Learning (AI/ML) and data analytics community has been implemented to help meet DLA’s critical capabilities Objective C2:

Advanced analytics and automation and support DLA’s Strategic Plan Lines of Effort (LOEs). SAS provides Enterprise-level analytical capabilities for AI/ML. SAS Viya is a performant, scalable architecture that provides workload management, high availability, redundancy, processing power, unlimited users, processing cores, rolling upgrades with simplified patching and component deployments, and offers parallelization for increased throughput and the ability to economically scale by node (rather than server). It also supports both on-premises and cloud environments as well as incorporation with Active Directory.

SAS Viya was not accounted for in the original migration Performance Work Statement because it was not part of the ERP applications to be migrated. However, SAS Viya will be part of the ERP applications supported post-migration, so DLA requires it to be supported along with ERP applications that were migrated.

Executing this change to the existing task order option year is necessary to allow DLA to transition to Viya in advance of SAS Grid’s end of support and provide access to SAS Viya functionality, and it is critical to maintaining DLA’s ability to rapidly analyze and execute decisions based on data. It is imperative that this infrastructure is created within the same enclave as the ERP cloud migration to allow DLA to avoid duplication of managed service manpower, servers, services, and security implementations.

Without a successful transition to SAS VIYA, DLA will be critically impacted by not having the capability of providing to its analytical community a single Web-Based application for reporting, visualizations, data exploration, and analytics from within a single integrated environment directly linked to its data. DLA will not have ability to use machine learning and natural language explanations to find, visualize and narrate stories and insights that are easy to understand and explain, nor the ability to find out why something happened, examine various options and uncover opportunities hidden deep in the user data. DLA will also not have the capability to automatically highlight key relationships, outliers, clusters and more to reveal vital insights.

It is critical from an infrastructure perspective that the environment build for SAS VIYA be fully integrated into the current ERP and EDW environment in all perspectives, including the inheritance of security controls, CYBER Security measures, and data integration to all ERP and EDW databases. It needs to be contained behind the same Firewalls, load balancers, and Web dispatchers, and share all Ports and Protocols, as well as Web Tokens to be fully integrated for DLA’s user base.

In summary, by having Carahsoft build this additional infrastructure to support SAS VIYA into the current ERP/EDW in each of the landscapes, namely Development, Staging, and Production, DLA can ensure that the builds are a cohesive effort and not detrimental to any of the environments or compromising security, segregation of duties, or role-based access at any level. This capability must be integrated as part of the ERP/EDW cloud migration in total to provide a secure realm for data access. Without this support, DLA will not be able to meet the goals for AI/ML in securing its data for predictive analysis of the data.

5. DETERMINATION BY THE ORDERING ACTIVITY CONTRACTING

OFFICER THAT THE ORDER REPRESENTS THE BEST VALUE CONSISTENT

WITH 8.404(d):

The Contracting Officer will determine that the order to be awarded represents the best value to the Government consistent with FAR 8.404(d). In making this best value determination, the Contracting Officer will perform a price reasonableness analysis utilizing the techniques found at FAR 15.404-1, including: (1) Comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items (FAR 15.404-1(b)(2)(ii)); (2) Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements (FAR 15.404-1(b)(2)(iv)); and/or (3) Comparison of proposed prices with the Independent Government Cost Estimate (FAR 15.404-1(b)(2)(v)).

6. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AMONG

SCHEDULE HOLDERS

In accordance with DFARS 208.7402, departments and agencies shall fulfill requirements for commercial software and related services in accordance with the DoD ESI. ESI promotes the use of enterprise software agreements with contractors that allow DoD to obtain the most favorable terms and pricing for software and information technology support services. In accordance with DFARS 208,7402, PGI 208.7403, DLAD 39.9001 (h), the DoD ESI service agreements were reviewed, and it was determined that there are three ESI BPA holders for SAP Public Services Inc. (Advantaged Solutions Inc., Carahsoft Technology Corp., Oakland Consulting Group, Inc.) who offer technical and program management services with SAP expertise on their ESI BPAs against their General Services Administration (GSA) Schedules.

The Program Office used the average labor rates for all ESI Vendors (Carahsoft Technology, Advantaged Solutions Inc, and Oakland Consulting Group, Inc) to create an Independent Government Cost Estimate (IGCE) for the additional 3-month extension of services.

Carahsoft is the only vendor capable of providing the required services under this requirement without a loss of continuity and at the necessary level of quality in the required timeframe. Additionally, a request for a Rough Order of Magnitude (ROM) sent to the manufacturer for the additional required cloud hosting services, licensing, managed services and Infrastructure-as-a-Service (IaaS) was conducted by the PMO for market research purposes from the manufacturer. The ROM was also used for the development of the IGCE.

7. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION:

N/A

8. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE RESTRICTED

CONSIDERATION BEFORE ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES OR SERVICES IS MADE.

DLA intends to competitively solicit amongst the ESI vendors for the follow-on -acquisition for Hosting and Licensing prior to the expiration of the current task order.

9. CERTIFICATIONS

Requirements/Technical Certification:

I hereby certify that the data provided for which I am responsible and which form a basis for this justification is complete and accurate to the best of my knowledge and belief.

DLA Information Operations, J62

Contracting Officer's Certification and Approval:

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

DLA Contracting Services Office – Philadelphia

Competition Advocate Certification and Approval:

In accordance with FAR 8.405-6(c)(2)(xi), I have determined that FAR 8.405-6(a)(1)(B) applies and approve this justification.

DLA Contracting Services Office