S14 Attachment 4 Redacted MicroStrategy JOFOC Exhibit 1 1.14.2022.pdf

EXHIBIT 1

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING

ACTIVITY, AND SPECIFIC IDENTIFICATION OF THE

DOCUMENT AS A “JUSTIFICATION FOR OTHER THAN FULL

AND OPEN COMPETITION

Agency: U.S. Department of Housing and Urban Development (HUD) 451 7th Street SW, RM 5256 Washington, DC 20410

Contracting Activity: Office of the Chief Procurement Officer, Headquarters

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

A competitive contract using Brand Name only is being requested for purchasing license and license support service renewals for Microstrategy to meet the needs as described under Section 3 below for HUD Headquarters and HUD’s other government corporations.

Method of Contracting: New contract award Type of Contract: Fixed Price Type of Funds: This contract action will be funded with IT funds.

3. A DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET

THE AGENCY'S NEED (INCLUDING THE ESTIMATED VALUE)

Microstrategy 30076 Elite Support (Renewal) 1

Microstrategy 30078 Standard Support (Renewal) 1

Microstrategy 84020 Enterprise License - Named User 1

Delivery Date: Not later than 1/31/2022 Estimated Total Dollar Value: $3,679,275.22

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY

PERMITTING OTHER THAN FULL AND OPEN COMPETITION

Statutory Citation: FAR 6.302-1(2)(ii) and 6.302-(c)(1), Only One Responsible Source and no other supplies or services will satisfy agency requirements, 41 U.S.C. 3304 (a) (1).

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S

UNIQUE QUALIFICATIONS OR THE NATURE OF THE ACQUISITION

REQUIRES USE OF THE AUTHORITY CITED

Not applicable as this requirement will be competed under this Brand Name Justification.

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

NOT BE PUBLISHED AS REQUIRED BY SUBPART 5.2 AND IF NOT,

WHICH EXCEPTION UNDER 5.202 APPLIES

As required by the FAR Subpart 5.2, a notice will be publicized. The requirement will solicited on an open market basis permitted the maximum opportunity for offers to be solicited from as many potential sources as is practicable.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE.

The contracting officer will determine that the anticipated cost to the Government will be fair and reasonable based on historical pricing and/or on the Independent Government Cost Estimate (IGCE) and/or any other technique available under the FAR for the same or similar services that s/he finds appropriate.

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.

A independent quote was received by the incumbent contractor Perspecta/Peraton dated 12/9/2021. An RFI was sent on 1/11/2022 unrestricted to 130 large and small business vendors on NASA SEWP for MicroStrategy, Service Now and Oracle PeopleSoft Licenses. One small business responded. Affigent can provide all 3 licenses.

Another RFI was sent on 1/7/2021 to 103 small business vendors on NASA

SEWP. One small business responded. Affigent can provide all 3 licenses.

Because only one vendor could provide the three licenses, Microstrategy licenses are being procured in accordance FAR Part 6.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN

FULL AND OPEN COMPETITION

HUD Headquarters and HUD’s other government corporations use MicroStrategy to support the HUD mission requirements and the tracking and implementation of congressional program funding for HUD. Renewing the software license and software license support services for MicroStrategy is both prudent and necessary to avoid and mitigate the risk of significantly impacting the HUD mission requirements. While compatible software exists on the marketplace, HUD has invested considerable resources (time and money) into the deployment and adoption of the existing application brand. HUD has created over 20 system integrations within our IT environment; has trained numerous HUD personnel on the development, administration and use of the applications; and created over 1,000 financial, regulatory and analytical reports based on the existing software products. Acquiring and implementing new software to the enterprise adoption level of the current software would minimally take 18 months along with duplication of costs.

Without the licenses, the functionality of the systems listed below would be disrupted causing hazardous effects on the US housing market and economy.

List: Disaster Recovery Grand Reporting (DRGR), DRGR Online Analytical Processing (OLAP), Grants Management Process (GMP), HUD Enforcement Management System (HEMS), HUD Environment Review Online System (HEROS), Integrated Disbursement & Information System (IDIS), Enterprise Income Verification (EIV), PIH Operating Fund System (OpFund), Enterprise Income Verification (IVT), Single Family Acquired Asset Management System (SAMS), Electronic Special Needs Assistance Program System (e-snaps), Integrated Budget Forecast Model Project (iBFM), Integrated Real Estate Management System (iREMS), Loan Review System (LRS) and CPD Dashboard / Enterprise Analytics Platform (EAP).

While the functionality of the applications that utilize these software licenses is broad, examples of lost functionality include the inability: to accurately create congressionally mandated reports on the status of various assistance programs; to process housing discrimination complaints in a timely manner; for HUD to report on Grants activities and for Grantees to access Grant funds; to develop, document, and manage environmental reviews, accurately conduct certain HUD budgetary activities; to conduct analytics research to further the mission of Community Planning and Development, and more.

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN

WRITING, AN INTEREST IN THE ACQUISITION

Affigent and Perspecta/Peraton has expressed an interest in this requirement.

11. A STATETMENT OF ACTIONS, IF ANY, THE AGENCY MAY

TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO

COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION FOR

SUPPLIES OR SERVICES

This procurement will be competed under this Brand Name Justification.

12. CONTRACTING OFFICER CERTIFICATION THAT THE

JUSTIFICATION IS ACCURATE AND COMPLETE TO THE

CONTRACTING OFFICER'S KNOWLEDGE AND BELIEF.

See certification at Part 2, Form HUD-24012.