SalesForce EFO_Redacted.pdf

EFO-2020-005

Template Version: Base

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

NASA SHARED SERVICES CENTER (NSSC)

Justification for an Exception to Fair Opportunity

Description of the action being approved: This justification documents the basis for raising the ceiling and elaborating the scope via a modification to the NSSC’s SalesForce SEWP Catalog using the Exception to the Fair Opportunity process.

The NSSC intends to execute a modification to increase the ceiling from $6,000,000 to $13,499,999 and to clarify the scope of SEWP catalog NNG15SC27B for SalesForce, Inc.

products. The current SEWP catalog was establishedon November 1, 2020 and features a one-year base period and two (2) one-year option periods. Assuming all option periods are exercised the ultimate completion date will be October 31, 2023. The period of performance will not be affected by this modification.

This modification will also provide further detail to the scope of the SEWP catalog. The scope of the current SEWP catalog is as follows:

The scope of this SEWP catalog covers any and all products, maintenance and services that fall under the Salesforce portfolio. All current items provided under this catalog are specified in the attached Bill of Materials (BOM). The Government has the discretion to add new products (to include new versions, updates, and cloud offerings), maintenance and services as long as they fall under the Salesforce portfolio and are within the ceiling, period of performance, and terms of condition of this catalog.

As indicated by this scope, the NSSC’s intent was to cover “any and all products, maintenance and services that fall under the Salesforce portfolio”. At the time of award, MuleSoft was one of the products that the NSSC included in its bill of materials. These products will feature an expanded presence within NASA’s portfolio over the next few years and the NSSC may need to add further MuleSoft products to the catalog.

Additionally, Tableau will be added to the catalog’s bill of materials in the very near future.

Leading up to the award of this catalog, SalesForce was in the process of acquiring Tableau.

This acquisition was completed on August 1, 2019. At the time of the catalog’s award, Tableau was not yet fully integrated into SalesForce’s product portfolio. This has since changed and it is therefore the NSSC’s intent to add Tableau products to this catalog moving forward. While MuleSoft and Tableau always fell under the aforementioned scope, the NSSC is elaborating on how this software will be used for various projects at NASA as part of the process of raising the catalog ceiling.

Description of the supplies or services required to meet the agency’s needs:

This SEWP catalog requirement includes but is not limited to the following products and services: Salesforce Lightning Sales Cloud Unlimited Edition (UE), Lightning App Starter, Salesforce Government Cloud, Salesforce Einstein, Salesforce Lightning Service Cloud, Salesforce Community Cloud, Salesforce Marketing Cloud, Salesforce Shield, MuleSoft/Salesforce Integration Cloud, Tableau Creator, Server and Viewer licenses, and other software applications, products and support services that fall under the Salesforce, Inc. umbrella. New products, services, license types and revisons are also considered within scope of this catalog so long as they fall under SalesForce, Inc.’s product and services portfolio.

Salesforce is a Digital Experience Platform offered by Salesforce, Inc. which gives subscribers access to a collection of software as a service (SaaS) with capabilities that include but are not limited to: account, contact and partner relationship management; activity and opportunity management; forecast management; reports and dashboards; analytics; platform integration; business process automation; and workflow automation.

MuleSoft provides an integration platform to help businesses connect data, applications and devices across on-premises and cloud computing environments.

Tableau is data visualization software that is used for data science and business intelligence. Tableau can create a wide range of different visualization to interactively present the data and showcase insights. More information regarding these capabilities and why NASA needs them is provided in Section 6.

The total ceiling for this requirement is increasing from $6,000,000 to $13,499,999 based on the NSSC’s Independent Government Cost Estimate (IGCE), which encompasses the following additional requirements and includes all Options while allowing additional ceiling margin to account for license growth and/or price escalation. The IGCE is provided below:

The Contracting Officer recommends increasing the catalog ceiling to $13,499,999 to account for the aforementioned requirements, to accommodate unanticipated growth and provide NASA with a margin of error if growth goes over the estimates listed here.

Identification of Exception to Fair Opportunity:

FAR 16.505 (a)(4), Items Peculiar to One Manufacturer. An item peculiar to one manufacturer can be a particular brand name, product, or a feature of a product, peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer.

FAR 16.505(b)(2)(i)(A), The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

Cost Categories Base Year

11/1/19 - 10/31/20 Option Year 1

11/1/20 - 10/31/21 Option Year 2

11/1/21 - 10/31/22 Total

Final Totals for New Ceiling

$2,629,363 $5,176,493 $5,694,143 $13,499,999

Revised IGCE for Salesforce Products & Services (Original and New Requirements)

Methodology: The Original Licenses/Support estimates were rounded to a Ceiling of $6M. Estimated New costs were added for 5 potential new Cost Categories over the rest of the Base Year and the two remaining Option Years. The option year license/support amounts were calculated using the previous year's amount estimated spend as a basis plus a 10% uplift for potential price escalation.

* The New Requirement estimates do not currently account for additional new licenses being purchased in the out years.

FAR 16.505(b)(2)(i)(B), Only one awardee 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.

FAR 16.505(b)(2)(i)(C), The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

FAR 16.505(b)(2)(i)(D), It is necessary to place an order to satisfy a minimum guarantee.

FAR 16.505(b)(2)(i)(E), For orders exceeding the simplified acquisition threshold a statute expressly authorizes or requires that the purchase be made from a specified source.

FAR 16.505(b)(2)(i)(F) In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in part 19 apply.

Supporting Rationale: FAR 16.505(b)(2)(i)(B) “Only one awardee 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.” Salesforce is the only supplier that provides a single integrated platform that extends NASA the following benefits (note-while others do provide some report capability in their solution, it is not integrated into all their solutions in a single platform):

NASA’s current catalog for SalesForce products and services is with SalesForce, Inc.’s master reseller for the federal government, Carahsoft. In order to ensure continuity of operations and considering NASA has already paid for licenses and is actively receiving services from Carahsoft, the NSSC intends to increase the ceiling on its current catalog from $6,000,000 to $13,499,999. There will be no changes to the period of performance associated with this Exception to Fair Opportunity. Because NASA already has this catalog in place, Carahsoft is only contractor that can continue to provide these services under the current vehicle.

A description of why SalesForce, Inc’s products and services are unique and highly specialized follows.

As Salesforce is currently in use by a number of organizations across NASA, this requirement will satisfy NASA’s requirements for a fully integrated customer relationship management system, with minimal downtime, and eliminate duplicative expenditure, NASA requires this software as a service, which greatly reduces the time and money spent on application maintenance activities such as installing, managing, and upgrading software. This requirement will also provide a platform to customize the existing and future software tools to meet NASA’s specific organizational needs.

Only Salesforce software will satisfy the Agency’s Information Technology (IT) requirements due to its unique and specialized products, such as out-of-the-box workflow and analytics capabilities that align with Agency internal and external collaboration processes, a cadre of technical capabilities that help expand current analysis capabilities that extend across requirements from partnerships to financial management, and the ability to streamline disparate business processes across organizations that are in various phases of tool adoption. Salesforce software is proprietary to Salesforce, Inc. and its software tools are already integrated into the current NASA IT architecture which supports multiple NASA missions and organizations across the Agency.

The end users of Salesforce have developed inherent knowledge of the product that has grown more refined over the course of the years. If NASA were to switch to an alternative product for these end users, there would be lost production due to the lost capabilities and a negative impact on schedule since these end users would be required to train on a new product. Since its initial implementation at Johnson Space Center’s (JSC) External Relations Office (ERO), NASA has begun to use Salesforce at many of its other centers including Headquarters (HQ) and the Office of STEM Engagement (OSTEM) at Marshall Space Flight Center (MSFC). ERO’s Salesforce portfolio is currently the largest Salesforce instance at NASA.

Additionally, one of ERO’s primary customers, OSTEM, determined the Salesforce platform was a best fit for additional business requirements including supporting student engagements and managing their performance management system. These organizations use the following Salesforce functional and technical requirements, among others:

• Business Management

• Email distribution and analytics

• New business capture

• Client Management

• Contract Management

• Budget Management/Reporting/Tracking

• Organizational Travel Planning

• FTE Tracking and Planning

• Asset Tracking

• Volunteer Outreach

• Executive Invitations

• Organizational Space Act Agreement Tracker

• Leave Calendar

• Space Flight Awareness Inventory Control

• Tours and Protocol Management

• Internship Onboarding and Management

Salesforce software is the only tool that is available as a consolidated package to NASA to meet these aforementioned functional and technical requirements. Migrating to an alternative product would cause significant inefficiencies and cause a major disruption in these office’s abilities to meet their mission.

During the Agency’s market research for this requirement, NASA OCIO reviewed its current infrastructure, which included various applications and tools that the organization is currently using. The Salesforce platform is the only product that will allow the organization to meet its current requirements. In addition, during the market research the NASA CIO determined that this product was the only one that will provide for future implementation Enterprise-wide. There is no other known option that will allow NASA to meet its interoperability requirements without causing major duplicative efforts, loss of functionality, substantial retraining and major increase in IT costs across NASA.

Once this requirement is fulfilled, OSTEM and ERO will enter into a license agreement that will cover their current users plus an additional ~200 users and migrate their data from the existing ERO implementation of the software application. In addition, the JSC Office of the Chief Financial Officer (CFO) will use this software to consolidate disparate financial tracking systems. Ultimately, NASA will use this requirement to provide for a unified financial tracking system Agency-wide across all of its CFO organizations.

Market research indicates that if Salesforce were to be replaced, there would be a significant upfront investment cost of over $2 million (licensing, transition, redevelopment, training and installation), which represents the entire cost required to determine the unique business processes associated with the 5+ organizations that already use Salesforce and align them with the corresponding tools/toolsets. This $2 million figure also includes costs associated with implementing/customizing and/or procuring the tools that align with known requirements, the cost to train users in a new system, the cost to migrate over 300 users to a new system while still requiring to pay the current Salesforce license fees (up to $900k for, at a minimum, the duration of the existing contracts) to ensure continuity of operations during product migration. If a single tool cannot be identified to replace the variety of identified use cases, the Agency also loses leverage in the ability to centralize data resulting in duplicate entries and missed opportunities to collaborate on a centralized, authoritative data set. Migrating these services to another software product would require a significant loss of time, finance and additional resources that would not be in the best interest of the agency. The substantial duplication of cost and extensive program delays noted above, would have a negative impact on NASA's mission.

The integration across Salesforce, Mulesoft and Tableau offers a unique, streamlined application architecture opportunity for the government to initiate platform consolidation activities across core Enterprise-required capabilities.

Determination that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer will make a determination of fair and reasonable pricing based upon the comparison of the IGCE, historical pricing on the myriad stand-alone orders, and the current commercial price list for Salesforce products. Discussions were also held with other users of Salesforce products, such as USDA and GSA to benchmark anticipated prices. NASA also consulted with Gartner for information regarding pricing, license quantities, and tiered pricing. NASA also anticipates reviewing SEWP and GSA schedules to determine whether or not the pricing it receives from Carahsoft is fair and reasonable.

Finally, a preliminary price analysis was conducted by the SEWP team in accordance with FAR 15.305(a)(1), to ensure that a fair and reasonable price is paid by the Government and reasonableness of proposed prices was established in accordance with FAR 15.403- 1(c)(1)(i)(B). Any additional discounts will be against pricing that has already been determined to be fair and reasonable IAW the FAR. With all these factors combined, the Government can be assured that it will be receiving fair and reasonable pricing for this requirement.

Other Facts: Through in-depth analysis, NASA identified a number of Enterprise-wide requirements that can only be fulfilled using Salesforce’s technology:

Contract Management: Salesforce is the only product that will allow NASA the ability to solicit direct inputs from its extensive external partner community and the only product that will allow NASA’s external partners to create their own profiles and manage their contact information by securely providing inputs directly into the system. NASA is currently using this technology to manage and track internship applications nationwide, securely solicit vendor inputs on projects/contracts into a NASA-owned system, and share contact information across organizations thus ensuring consistency in how NASA interacts with industry. This new requirement will allow NASA to continue to use Salesforce technology to continue its current contact management processes and improve future contact management processes.

Opportunity Management: NASA uses Salesforce to track internship applications, and is expanding those capabilities to create a “Journey-view” of the intern experience. Salesforce enables the Internship Office to view critical details as a timeline of each intern’s career within NASA.

Additionally, several offices across NASA are using Salesforce to identify vendors, small businesses and universities seeking partnership opportunities with NASA. Salesforce affords the only opportunity to centralize these data sets and connect like-business units performing similar activities either in disparate toolsets with limited functionality, or even, in some cases, manually through desktop applications.

In addition to managing opportunities, NASA uses a Salesforce portal to communicate directly with current and prospective partners through a built-in email marketing tool that enables email customization/branding, selective distribution, and the ability to correlate response data with associated email campaigns.

Reports and Dashboards: NASA uses Salesforce reporting for near-real-time updates on platform data sets. NASA currently uses the Salesforce platform to track task order budgets and reporting, provide detailed insight into programmatic financial postures that can be synthesized to display relevant information at various levels of management, identify – through an interactive map – which congressional districts are represented in various requests to the Agency, track project progress and reporting, and provide results/aggregates of sentiment analysis surveys initiated within the tool.

Supporting capabilities from Mulesoft and Tableau provide deeper insight and facilitate data-driven decision making by providing an integrated interface across multiple systems as well as enhaced data visulation competencies.

Workflow and Approvals: NASA uses the Salesforce Process Builder to automate a number of business processes including contract and budget Management approvals, organizational travel planning, FTE tracking and planning, internal and external requests to the Agency (speaker engagements, exhibit requests, executive invitations, etc.), and internship onboarding and management.

Data Management: NASA uses Salesforce to improve Data Management by promoting a data-driven business model through real-time reporting and analysis of authoritative data, and creates Enterprise-wide transparency across business functions through a tailored data sharing approach.

These features and functionalities in their totality can only be provided by Salesforce. Using alternative solutions would cause a significant disruption in NASA’s operational efficiencies and result in unnecessary costs and schedule delays.

NASA will also use Salesforce software to meet the goals of FITARA, which involves eliminating duplication and waste in information technology acquisition for the federal government. The goals of the legislation – reduction of duplicative systems, examine software licensing options, making the business case for acquisition, and the consolidation of data centers. This acquisition is the result of extensive analysis of NASA’s requirements against Salesforce core capabilities and the determination that only by migrating to the Salesforce platform can the Agency divest a number of duplicative or outdated applications that are costly to maintain and provides the agency the only opportunity to reduce its data footprint by integrating cloud services into core operations. Furthermore, it reduces the number of

Salesforce licensing contracts from four to one, thus streamlining acquisition and provides reduced expenditures through a bulk purchase agreement.

Where application rationalization is not an option, Mulesoft provides extensive opportunities for system and data integration into a centralized interface.

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: The Agency will continue to examine the market in the future for alternative solutions before executing any subsequent contract action for the requirement herein.

Due to the nature of the expressed requirement, however, there are no known actions which the Agency may take to give consideration to other manufacturers for the requirements described herein.

Template Version: Base

NSSC SALESFORCE SEWP CATALOG

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

SIGNATURE PAGE

I certify that the requirements and technical data contained herein, and which form a basis for this justification are accurate and complete.

Allison Wolff Technical Representative

I hereby certify that this justification is accurate and complete to the best of my knowledge and belief. Based on the content herein, it is determined there is substantial evidence to justify this exception to fair opportunity.

Justin Fraser Contracting Officer

CONCURRENCE:

Mike Vicory Procurement Officer

APPROVAL:

Based on the information provided in this justification, and as the approving official, I have determined that the exception at FAR 16.505(b)(2)(i)(B) applies to the order.

Jeff Seaton Competition Advocate, HQ Chief Information Officer (Acting)

Allison Wolff

Date: 6/24/20____________ ___________________________ uststststststsststststststss in Fraser

Michael Vicory Digitally signed by Michael Vicory Date: 2020.07.20 15:46:14 -05'00'

JEFFREY SEATON

Digitally signed by JEFFREY

SEATON

Date: 2020.08.11 16:39:32 -04'00'