Req 1064253217 HP Server Maintenance - Brand Name JA R.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SECTION 1: IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY

Department of State Contracting Activity

☒ Office of Acquisitions Management

☐ Foreign Service Institute

☐ Office of Foreign Missions

☐ U.S. Mission to the United Nations

☐ Overseas Post

Requiring Activity CGFS/CIO/TO/IO/ID

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

Approval is requested to award a contract with exception to fair opportunity for HP ProLiant Server

Maintenance and Support Renewal on behalf of the Comptroller and Global Financial Services (CGFS), Chief

Information Officer Directorate (CIO), Office of Technology Operations (TO), Infrastructure and Operations

Division (IO), Infrastructure Division (ID).

2.

It is cI It is contemplated that the agency will award a firm fixed price delivery order for HP ProLiant Server maintenance renewal for a period of one year. The estimated dollar amount of this requirement is .

The maintenance renewal covers HPE Tech Care Essential wDMR SVC; HPE Hardware Tech Support; and HPE Remote Tech Support.

SECTION 3: DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

CGFS/CGFS/CIO/TO/IO/ID has a requirement to purchase continued maintenance for the available user base to existing HP ProLiant Servers. The use of an HPE approved vendor with access to HPE parts is essential to the

Government’s requirements, Department of State infrastructure requirements, and continuity of current operations, thereby precluding consideration of the products of another brand name. The estimated dollar amount of this requirement .

Maintenance and support of these mission-critical infrastructure components are crucial to preserve and maintain environments. HPE support is the intellectual property of HPE and can only be provided by HPE or an authorized reseller of HPE. As such, it is not available from another commercial manufacturer. Maintenance must be covered under the manufacturer’s warranty and procured through manufacturer-approved distribution channels. Sellers must be able to document their ability to provide items through HPE approved distribution channels upon request.

SECTION 4: IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER THAN

FULL AND OPEN COMPETITION

This acquisition is conducted under the authority of 41 USC 3304, as implemented by FAR 6.3 and substantiated by the following:

☒ FAR 6.302-1 – Only one responsible source and no other supplies or services will satisfy agency requirements.

SECTION 5: DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY

CITED

HPE maintenance and support is critical to ensure the reliability, performance, and longevity of our IT infrastructure. Hewlett Packard Enterprise (HPE) is a global leader in enterprise hardware solutions, and their support services provide comprehensive coverage designed to minimize downtime and maximize productivity.

HPE offers rapid response times and proactive monitoring, which helps to quickly identify and resolve hardware issues before they escalate into major outages. This ensures that business operations remain uninterrupted, safeguarding revenue and customer satisfaction.

They also provide access to certified technical experts with deep knowledge of HPE systems. This expertise accelerates problem resolution and reduces the risk of incorrect repairs, which can lead to extended downtime or additional costs.

Timely maintenance and genuine parts replacement included in the support agreements, hardware lifespan is significantly extended, protecting the organization’s investment and delaying costly capital expenditures on new equipment.

HPE’s support includes firmware updates and security patches that are essential for protecting the hardware against vulnerabilities. This helps ensure compliance with industry regulations and internal security policies.

SECTION 6. DESCRIPTION OF EFFORTS TO ENSURE THAT OFFERS WERE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A NOTICE WAS OR

WILL BE PUBLICIZED AS REQUIRED BY FAR SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION

UNDER FAR 5.202 APPLIES

The NASA SEWP Market Research Tool (MRT) was used to perform preliminary market research. The MRT can search using the OEM/Provider and then drill-down part number(s) to identified availability of SEWP Contract Holders and their socio-economic type.

For this market research, a query was initiated based on the criteria of: 1) Provider = HPE, and 2) Part

Number = HU4B3AC (HPE Tech Care Basic wDMR SVC). Availability of contractors capable of providing the part number is 120 small business. The results identified multiple small business that carry “HPE” products, and of these over 29 small businesses have the exact part number on their SEWP Contract. A graphic of the results is shown.

below. Based

SECTION 7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST

TO THE GOVERNMENT IS FAIR AND REASONABLE

Vendors must quote prices at or below their NASA SEWP V established contract unit ceiling prices for each item. The SEWP contracts are FAR Part 12 Commercial Contracts, and additional price analysis was done in accordance with the following: The price design for SEWP is a proposed discount off the offeror’s commercial list price. Price analysis was conducted in accordance with FAR 15.305(a)(1), to ensure that a "fair and reasonable" price is paid by the Government.

Reasonableness of proposed prices was established in accordance with 15.403-1(c)(1)(i)(B) which provides that a price is based on adequate price competition if two or more responsible offerors, competing independently submit priced offers that satisfy the Government's expressed requirement and there is not any finding that the price of an otherwise successful offer is unreasonable. To verify price reasonableness, offerors were instructed to submit their published price catalog or published schedule of list prices in a form regularly maintained by the manufacturer or offerors, such as a catalog, price list, schedule, or other verifiable and established record.

Additionally, each contractor proposed a discount off of product categories (such as input-output device) of IT equipment. These discounts remain for the life of the contract. Therefore, when new technology is added or list prices change due to market fluctuations, the SEWP price remains fair and reasonable. There are several other price reasonability checkpoints in SEWP:

• When items are added or prices updated on a SEWP contract, prices are automatically compared to other SEWP contracts and must be within a reasonable price of all other contracts

• All SEWP Delivery Orders are subject to fair opportunity through competitive procedures through the SEWP RFQ Tool. This internal competition provides an incentive for Contract Holders to provide the best possible price in order to be selected for award.

Pursuant to FAR 16.202-2(a) the Contracting officer can establish fair and reasonable prices at the outset when there is adequate price competition.

By signing the justification, the Contracting Officer makes a determination that the price paid under this delivery order is fair and reasonable.

SECTION 8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE PART 10) AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED

As this is a brand name only justification, no one contractor’s unique qualifications are used as the basis for this justification. Rather, the products identified by brand name herein have been identified as the only products that will meet CGFS’s requirements. It is anticipated that the requirement will be competed among HPE’s authorized resellers and award will be made based on the limited NASA SEWP V GWAC competition.

Due to the proprietary nature of this requirement, there are no known actions that the Department may take to overcome future barriers to competition for HPE, Inc. A patent, copyright, proprietary data, or licensing agreement limits competition. The proprietary data are described as follows: HPE is the copyright protected intellectual property of HPE, Inc. The components, maintenance and support required by the government and can only be provided by HPE, Inc. or its authorized/approved resellers.

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

COMPETITION

As this is a brand name justification, no one vendor’s qualifications/services are requested. This will be competed amongst brand name resellers of HP ProLiant Server maintenance renewal.

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

IN THE ACQUISITION

To date, no other sources have written to express an interest in this requirement.

SECTION 11. 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

There are currently no known actions that the Department may take to overcome barriers to competition for the maintenance renewal of HPE, Inc. Due to the proprietary nature of all hardware and software, add-ons must be from HPE, Inc. or their designated partners on a brand name basis.