SBA Microsoft ELA Justification for Exception to Fair Opportunity Final 09-18-2025 Redacted.pdf

CUI//SP-SSEL

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JUSTIFICATION FOR AN EXCEPTION

TO FAIR OPPORTUNITY

UNDER INDEFINITE

DELIVERY/INDEFINITE QUANTITY

(IDIQ) CONTRACTS

SBA PIID 73351022F0229

Microsoft ELA Software Licenses in support of:

Small Business Administration

United States (U.S.) General Services Administration (GSA) Federal Acquisition Service

Office of Centralized Acquisition Services (OCAS)

Interagency Agreement Number 47QACA25S0002

Controlled by OCAS Contracting Officer Christiane Lynch: Christiane.Lynch@gsa.gov

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The General Services Administration (GSA) Office of Centralized Acquisition Services (OCAS) makes this Justification for the issuance of an Exception to Fair Opportunity order pursuant to Federal Acquisition Regulation (FAR) 16.5.

a. Identification of Agency and Contracting Activity:

Agency:

GSA AAS acting in support of the Small Business Administration

Contracting Activity:

GSA OCAS Contracting Office (QFC) 1800 F Street, NW Washington, D.C. 20405

b. Nature and/or Description of Action Being Approved:

SBA’s delivery order 73351022F0229 was awarded in September 2022 under NASA SEWP GWAC NNG15SD39B. It is a Firm-Fixed Price delivery order with a base year and two option years. The period of performance is as follows:

Base Year: 09/27/2022 – 09/26/2023

Option Year 1: 09/27/2023 – 09/26/2024

Option Year 2: 09/27/2024 – 09/26/2025

The reason for the Justification for Exception to Fair Opportunity is to add two additional option years to this delivery order. The period of performance for these option years is as follows:

Option Year 3: 09/27/2025 – 09/26/2026

Option Year 4: 09/27/2026 – 09/26/2027

These option years are being added to the delivery order because the contractor, Regan Technologies Corporation, is providing a credit in the amount of $ for the Microsoft licenses. This credit can not be used with another contractor. Therefore, this delivery order must be extended.

c. Description of Supplies/Services and Estimated Value:

The Small Business Administration (SBA) Office of the Chief Information Officer (OCIO) has a requirement for Microsoft Enterprise License Agreement. The government’s requirement consists of email, collaboration [data, voice, and video], conferencing, chat, cloud storage, local storage, word processing, spreadsheet capabilities, slide presentation, forms, website building, notes, security and compliance, eDiscovery, business intelligence, internet access, mobile platform support, records management, project management, enterprise resource management, workflows, application lifecycle (i.e., discovery, design, development, release, maintenance, modernization, testing, etc.) and database capability.

The product descriptions, part numbers, and quantities of Microsoft licenses being procured are listed in the attached “47QACA25F0279 MS ELA Pricing Sheet Option

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Year 3 and 4”. The value for Option Year 3 is $ The value for Option Year 4 is $ The period of performance for these option years is as follows:

Option Year 3: 09/27/2025 – 09/26/2026

Option Year 4: 09/27/2026 – 09/26/2027

d. Identification of the Exception to Fair Opportunity and Rationale:

An exception to fair opportunity and award to Regan Technologies is necessary for the following reasons:

The rationale for this Exception to Fair Opportunity is that 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, and all awardees were given a fair opportunity to be considered for the original order (FAR 16.505(b)(2)(C)).

Unique Cost-Saving Opportunity Tied to OEM Terms: The incumbent contractor is able to offer a substantial price reduction on the required software licenses. This unique opportunity is a direct result of a rare provision in the Original Equipment Manufacturer's (OEM) terms, which allows for a significant price reduction—specifically, a 10% or more reduction in consumption has triggered a lower-cost license renewal tier.

Incumbent as the Sole Source for This Benefit: This reduced licensing cost is only available through the incumbent contractor. A new contractor would be required to procure the same licenses at standard commercial rates, thereby erasing any savings gained from the consumption reduction the government has achieved. The incumbent's pre-existing relationship and contract with the OEM allows them to pass this rare and substantial savings directly to the government.

Avoidance of Unnecessary Costs and Unfavorable Terms: A competitive procurement would compel the government to award a contract that could not provide the same financial benefit. By switching contractors, the government would forfeit all savings achieved from the reduced consumption and, at the same time, would incur higher costs overall for the same services and licenses. This would constitute a wasteful expenditure of taxpayer funds and result in an economically inefficient outcome.

Logical Follow-on: The proposed work is a logical follow-on to the previous contract, as it represents the most economical and efficient path to fulfilling the agency's ongoing needs. The incumbent's ability to provide the required licenses at a uniquely favorable rate makes them the only source capable of satisfying the agency's requirements in a financially prudent manner.

e. Determination That the Anticipated Cost is Fair and Reasonable:

The value for Option Year 3 is $ and the value for Option Year 4 is $ This is similar to the price of the Base Year and Option Periods 1 and 2, which were priced at $ each. The reason for the decrease in price for Option Year 3 in comparison to the previous options is that the quantities of each Microsoft license were changed, with some quantities being decreased. The reason for the slight increase in Option Year 4 is the addition of copilot to all SBA users. The anticipated cost for Option Year 3 and 4 is determined to be fair and reasonable.

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f. Other Facts Supporting the Justification:

There are no other facts.

g. Statement of Actions:

The government's best interest is served by awarding this order under an exception to fair opportunity. This action will secure substantial cost savings that are unavailable through a competitive process. The proposed action represents the most efficient and economical approach to meeting the government's needs and leveraging a unique, contractor-specific financial opportunity. The Government does not anticipate that the unique circumstances of this procurement will recur, therefore future orders will be awarded competitively.

h. Certification by Technical or Requirements Personnel:

I hereby certify that the supporting data is accurate and complete.

Troy Miles II Date SBA Contracting Officer’s Representative

i. Signature of Authorized Officials:

I hereby certify that the Justification is accurate and complete to the best of my knowledge and belief, and I determine on the basis of the findings above that the exception to fair opportunity is in accordance with the requirements and is in the best interest of the Government.

Christiane Lynch Date Contracting Officer GSA Office of Centralized Acquisition Services

Reviewed and Approved By:

Alberto Munoz Date Director

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Reviewed and Approved By:

Thomas Meiron Date Executive Director/Head of Contracting Activity Designee