Redacted_LSJ_Hitachi_Data_Capability__Sustainment_22mar17_Redacted.pdf

HNC CONTROL # 17-80F960

Limited Sources Justification (Brand Name Justification)

Exception to Fair Opportunity S17-0075 Hitachi Data Capabilities Sustainment -

Requirement: Purchase additional disk capacity to sustain the Hitachi Data Storage Capability for the USACE CPC (50TB) and WPC (50TB) datacenters with non-returnable drive support and maintenance.

This expansion will provide additional storage capabilities for the ever growing datacenter’s backup demands in meeting the DoD 8500.2 IA Control COBR-1 (Protection of Backup and Restoration Assets) requirements.

Authority: As required in Federal Acquisition Regulation (FAR) IAW 16.505(a)(4)(i) under the authority in 16.505(b)(2)(i)(B) “Only one manufacturer is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.”

Amount:

Prepared by:

Name: Richard Himebrook DSN: 256-895-2534 Title: Contract Specialist Date: 22 March 2017 e-mail: Richard.G.Himebrook@usace.army.mil

Contracting Officer:

Name: Sentrae Davis DSN: 256-895-1049 Title: Contracting Officer Date: 22 March 2017 e-mail: sentrae.davis@usace.army.mil

Technical Representative:

Name: Stacy Freeman DSN: 256-895-5503 Title: Project Manager Date: 22 March 2017 e-mail: stacy.c.freeman@usace.army.mil

Requirements Representative:

Name: Patrick Stone DSN: 256-895-1508 Title: Branch Chief Date: 22 March 2017 e-mail: Patrick.R.Stone@usace.army.mil

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager:

Name: Patrick Stone DSN: 256-895-1508 Signature: Date: 22 March 2017

Legal Counsel:

Name: Clay Weisenberger DSN: 256-895-8248 Signature: Date: 22 March 2017

STONE.PATRICK.R.1385799949 Digitally signed by STONE.PATRICK.R.1385799949 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=STONE.PATRICK.R.1385799949 Date: 2017.03.23 08:02:38 -05'00'

Digitally signed by WEISENBERGER.CHRISTOPHER.C.1367701419 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=WEISENBERGER.CHRISTOPHER.C.1367701419 Date: 2017.03.24 13:54:11 -05'00'

Limited Sources Justification (Brand Name Justification)

S17-0075 Hitachi Data Capabilities Sustainment

1. CONTRACTING AGENCY: United States. Army Corps of Engineers (USACE) – Huntsville Engineering & Support Center, Huntsville, AL 35816.

2. DESCRIPTION OF ACTION: This requirement is for a Firm Fixed price (FFP) delivery order to purchase additional disk capacity for the USACE CPC (50TB) and WPC (50TB) datacenters with non-returnable drive support and maintenance to sustain the Hitachi Data Storage Capability. This expansion will provide additional storage capabilities for the ever growing datacenter’s backup demands in meeting the DoD 8500.2 IA Control COBR-1 (Protection of Backup and Restoration Assets) requirements.

3. DESCRIPTION OF SUPPLIES: The Hitachi Virtual Storage Platform (VSP) provides USACE with data storage capability for enterprise applications requiring very high input/output performance which are not available on standard commodity storage platforms. Hitachi capabilities include virtualization of storage platforms automatic movement of data between solid state, high performance Serial Attached SCSI (SAS), and standard Serial Advanced Technology Attachment (SATA) disk drives to optimize input/output and reserve expensive solid state drives for the most demanding applications.

The current configuration requires additional disk drives, supporting adapters and platform upgrades in order to support current and near-term workloads. The supplies in the table below include disk drives, adapters, and platform upgrades to support the additional disk storage needed.

ACE-IT will utilize 96X4902 Revolving Funds for this requirement. The total estimated value for the required acquisition is and will consist of a single CHESS ITES-3H delivery order. The period of performance shall be ASAP or NLT 30-days from date of award. The Bill of Materials is provided below.

Central Processing Capability (CPC) 3909 Halls Ferry Rd, Vicksburg, MS 39180-6199

CLIN Description Mfgr Part Number Qty

Hitachi Virtual Storage Platform (VSP) Hardware Upgrade Components

SFF Drive Chassis DKC-F710I-SBX.P 1 Virtual Storage Platform Upgrade Configuration Notice 041-100104-01.P 1

Drive Chassis Bezel - HDS

DKC-F710I-

BUH.P 1

DKU Power Cord Kit (USA)

PHUC.P 1

Filler Panel

FIHT.P 13

SFF 900GB Disk Drive 2.5inch

900JCM.P 90

Device Interface Cable UU

UUC.P 1

2 VSP Planning and Configuration

SVC VSP Upgrade Installation Planning 043-991827-01.P 1 SVC VSP Upgrade and Configure - Storage Chassis 043-991832-01.P 1

3 VSP Hardware Maintenance - 36 Months SVC VSP SBX 1 Month Yr-A Warranty Service 043-991846-01.P 36 SVC VSP DRO SBX 1 Month - HDD Disk Retention 043-991910-01.P 36

4 VSP Operating System Software VSP Basic Operating System 10TB Block License 044-230001-010.P 1 VSP Basic Operating Sys 2-VSD Pair 240TB Upg to UNL License 044-230001-02L.P 1

5 VSP Software Maintenance - 36 Months SVC VSP BOS 10TB Block License - Software Maintenance 304-230001-010.P 36 SVC VSP BOS 2-VSD Pair 240TB Upg to Unlmtd - Software

Maintenance 304-230001-02L.P 36

6 VSP Shipping Inside Shipping / Freight Shipping 1

Western Processing Capability (WPC) 21515 NW Evergreen Pkwy, Hillsboro, OR 97124

CLIN Description Mfgr Part Number Qty

7 Hitachi Virtual Storage Platform (VSP) Hardware Upgrade SFF Drive Chassis DKC-F710I-SBX.P 1 Virtual Storage Platform Upgrade Configuration Notice 041-100104-01.P 1

Cache Memory Module (32GB)

C32G.P 2

Cache Flash Memory Module (64GB)

BM64.P 1

Drive Chassis Bezel - HDS

BUH.P 1

DKU Power Cord Kit (USA)

PHUC.P 1

Filler Panel

FIHT.P 13

SFF 900GB Disk Drive 2.5inch

900JCM.P 90

Device Interface Cable UU

UUC.P 1

8 VSP Planning and Configuration

SVC VSP Upgrade Installation Planning 043-991827-01.P 1 SVC VSP Upgrade and Configure - Storage Chassis 043-991832-01.P 1 SVC VSP Upgrade and Configure - Control Components 043-991993-01.P 1

9 VSP Hardware Maintenance - 36 Months SVC VSP SBX 1 Month Yr-A Warranty Service 043-991846-01.P 36

SVC VSP DRO SBX 1 Month - HDD Disk Retention Option 043-991910-01.P 36

10 VSP Operating System Software VSP Basic Operating System 10TB Block License 044-230001-010.P 1 VSP Basic Operating System 50TB Block License 044-230001-050.P 1

11 VSP Software Maintenance - 36 Months SVC VSP BOS 10TB Block License - Software Maintenance 304-230001-010.P 36 SVC VSP BOS 50TB Block License - Software Maintenance 304-230001-050.P 36

12 VSP Shipping Inside Shipping / Freight Shipping 1

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY: As required in Federal Acquisition Regulation (FAR) IAW 16.505(a)(4)(i) under the authority in 16.505(b)(2)(i)(B) “Only one manufacturer is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

The disk drives, supporting adapters and platform upgrades shown in the table under section 3 are for an expansion of a solution that is already in place. This procurement effort will add 50 Terrabytes to the existing Hitachi storage platform. Consideration of another manufacturer would require replacement of the entirety of the installed storage platforms at significant additional cost to the government for hardware, software, training and installation. Materials expenditures for the installed Hitachi storage controllers and disk are over $5,000,000. Training installation and labor are additional costs that exceed $100,000. The total cost of duplicating the Hitachi product is therefore estimated to be at least $5,100,000. Based on this, selection of another product would not generate cost savings to the government.

Hitachi is the only brand name that can provide the necessary upgrades to the current Hitachi VSPs.

Hitachi is the sole developer of the required supplies; however other vendors, via CHESS, are authorized to resale Hitachi products/services.

5. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated price to the Government for this contract action will be considered fair and reasonable upon award. Price reasonableness will be determined by using price analysis through competition.

Typed Name: Sentrae A. Davis Title: Contracting Officer

DAVIS.SENTRA

E.ANANSA.129

Digitally signed by

DAVIS.SENTRAE.ANANSA.1299722798

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=DAVIS.SENTRAE.ANANSA.12997227

Date: 22 March 2017 Signature:9722798 98 Date: 2017.03.22 13:11:21 -05'00'

6. Other Facts:

a. Procurement history.

(1) Contract Number and dates of last awards for Hitachi Data Storage Capability Sustainment.

Contract W52P1J-16-D-0013, awarded 30 Sep 20016 for the amount of $356,899.00 for hardware maintenance to the Hitachi equipment.

Contract W91WMC-13-P-0037, awarded 30 Sep 2013 for the amount of $249,999.54 for capacity expansion.

Contract W91QUZ-07-D-0011, awarded 30 Sep 2014 for the amount of $882,380.84 for capacity expansion.

(2) Competitive Status of these actions: CHESS award

(3) Authority previously used for less than full and open competition: 8 Federal Acquisition Regulation (FAR) IAW 16.505(a)(4)(i), Items peculiar to one manufacturer.

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results: Brand name is necessary to enable servers to physically fit into, and operate with existing Hitachi VSP infrastructure. This brand name procurement does not preclude competition and therefore it is reasonable to expect the government will receive a fair and reasonable price. There are multiple suppliers of these types of solutions and products through the Army ITES-2H contract on CHESS. There is a reasonable expectation of obtaining offers from three or more responsible parties for this brand name requirement.

(5) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances: N/A.

(6) An explanation of any unusual patterns which may be revealed by history, e.g. several consecutive, urgent buys: N/A

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the buy and whether there have been any significant changes: Brand name sole source procurement is necessary to enable servers to physically fit into, and operate with existing Hitachi VSP infrastructure. No significant changes

b. Acquisition data availability. See accompanying documentation.

c. Unusual and compelling urgency: N/A

d. Subcontracting competition. Subcontracting opportunities only exist through Hitachi resellers.

7. Efforts to Obtain Competition: The Hitachi hardware is used for data storage for critical business systems, including the Corps of Engineers Financial Management System (CEFMS) and Primavera 2 (P2) among others, systems which process mission-critical and sensitive financial and personnel data for

USACE.

The Hitachi VSP storage system has a published End of Support date in 2021. At that time, ACE-IT will conduct full and open competition for a replacement storage system, or cloud-based data storage.

8. Market Research: In accordance with (IAW) Army FAR Supplement (AFARS) 5139.101(90)(a), the Army’s CHESS program, is the mandatory source for commercial IT software purchases.

Specifically, the CHESS contracts are the primary vehicle for IT software purchases IAW Army Regulation 25-1. These contracts were awarded under the Federal Acquisition Streamlining Act (FASA) and Clinger-Cohen Act, which requires prime contractors be provided a Fair-Opportunity-to-be- Considered for Delivery Order (DO) Awards. The contracts are structured as Indefinite Delivery/Indefinite Quantity (ID/IQ) contracts, using delivery orders for acquisition of a full range of IT equipment. These contracts are available to the Army, Department of Defense, and other Federal Agencies.

ACE-IT conducted market research from 21 November 2016 through 02 December 2016 via Army, Computer Hardware, Enterprise Software and Solutions (CHESS) ITES-3H Requests for Information (RFI) 181888, to determine if the Hitachi Data Storage Capability Sustainment requirements could be procured through CHESS ITES-3H contract vehicle.

Vendor Contract Business Type Affigent, LLC W52P1J-16-D-0005 Small Business CDW Government, LLC W52P1J-16-D-0013 Large Business Dell Federal Systems L.P. W52P1J-16-D-0010 Large Business Dynamic Systems, Inc. W52P1J-16-D-0009 Small Business Force 3, LLC W52P1J-16-D-0018 Large Business Global Technology Resources, Inc. (GTRI) W52P1J-16-D-0011 Small Business GovConnection, Inc. W52P1J-16-D-0017 Large Business Government Acquisitions, Inc. W52P1J-16-D-0019 Small Business Hewlett-Packard Company W52P1J-16-D-0012 Large Business Intelligent Decisions, Inc. W52P1J-16-D-0020 Small Business International Business Machines Corporation W52P1J-16-D-0008 Large Business Iron Bow Technologies, LLC W52P1J-16-D-0014 Small Business Microtechnologies W52P1J-16-D-0029 Small Business Telos Corporation W52P1J-16-D-0006 Large Business Unicom Government, Inc. W52P1J-16-D-0007 Large Business Wildflower International, Ltd. W52P1J-16-D-0015 Small Business World Wide Technology, Inc. W52P1J-16-D-0016 Large Business

Table 1 – CHESS ITES-3H Vendors

ACE-IT determined the Hitachi data storage capability sustainment components are available via the Army’s Computer Hardware, Enterprise Software Solution (CHESS) as four CHESS responses were received: WWT, Affigent, Intelligent Decisions and CDW-G. Two businesses Affigent, Intelligent Decisions are small business; therefore this will be a small business set aside.

8. Contracting Officer Certification: “I certify that this justification is accurate and complete to the best of my knowledge and belief.”

Typed Name: Sentrae A. Davis Title: Contracting Officer

Digitally signed by

DAVIS.SENTRAE.ANANSA.1299722798

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, ANSA.1299722798 cn=DAVIS.SENTRAE.ANANSA.1299722798 Date: 2017.03.22 13:12:58 -05'00'

DAVIS.SENTRAE.AN

Date: Signature:

9. Technical Certification:

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

Typed Name: Stacy C. Freeman Title: Project Manager Date: 21 March 2017 Signature:

10. Requirements Certification: “I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.”

Typed Name: Patrick Stone Title: Program Manager Date: 21 March 2017 Signature:

FREEMAN.STAC

Y.C.1259553667

Digitally signed by

FREEMAN.STACY.C.1259553667

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=FREEMAN.STACY.C.1259553667 Date: 2017.03.23 07:57:16 -05'00'

STONE.PATRICK.R.1

385799949

Digitally signed by STONE.PATRICK.R.1385799949 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=STONE.PATRICK.R.1385799949 Date: 2017.03.23 08:03:18 -05'00'

11. APPROVAL

Based on the foregoing justification, I hereby approve the procurement of this requirement for U.S.

Army Corps of Engineers on a competitive basis and IAW Federal Acquisition Regulation (FAR) IAW 16.505(a)(4)(i) under the authority in 16.505(b)(2)(i)(B) “Only one manufacturer is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized, in the total estimated amount of and provided that the services and property herein described have otherwise been authorized for acquisition.

Sentrae Davis Contracting Officer - CEHNC

Signature:

Digitally signed by

DAVIS.SENTRAE.ANANSA.1299722798

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=DAVIS.SENTRAE.ANANSA.1299722798 Date: 2017.03.22 13:14:03 -05'00'

Date:

ANSA.1299722798

DAVIS.SENTRAE.AN