ServiceNow LSJ -V1_6 signed_Redacted_(2).pdf

Limited Sources Justification and Approval (J&A)

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 2 of 4

I. Contracting Activity.

HQ SpOC Space Acquisition Management - Directorate/PK

II. Nature and/or description of the action being processed.

USSPACECOM requires an EITSM capability solution to automate and manage multiple business and mission workflows to include IT Service Catalog, IT Service Requests, NetOps, Assets Management, etc.

Based upon their need, the brand name “ServiceNow” is the best software solution. Per DFARS 208.7402, Departments and agencies shall fulfill requirements for commercial software and related services, such as software maintenance, in accordance with the DoD Enterprise Software Initiative (ESI) (see website at http:// www.esi.mil/). ESI promotes the use of enterprise software agreements (ESAs) with contractors that allow DoD to obtain favorable terms and pricing for commercial software and related services. The DoD ESI vehicle identifies a single award BPA to Carahsoft for ServiceNow software. Additionally, Air Force Installation Contracting Center (AFICC) Launch Pad shows the ServiceNow software is a mandatory use

BPA.

As a result, this individual Limited Source Justification and Approval is for the authority to award a firm fixed price contracts and actions for the brand name ServiceNow software from the mandatory source, Carahsoft.

The total estimate for the contract and all contract actions under this LSJ is up to $14.9M. The current requirement is estimated at $7.5M which is to provide ServiceNow Software the USSPACECOM Staff Directorates at Peterson AFB and Schriever AFB. However, this may end up increasing up to $14.9M if USSPACECOM requests to provide their additional organization units to include Combined Forces Space Component Command (CFSSC) and Joint Task Forces - Space Defense (JTF-SD) ServiceNow software. If this were to occur, a modification to add the other locations would take place using this LSJ.

The Period of Performance is estimated to be 15 February 2021 - 14 February 2026.

This will be a Firm-Fixed Price contract with potential time and material CLIN for implementation IAW with the BPA contract N6600119A0120, terms and conditions.

All local clauses will be included in the resultant award.

III. Description of supplies/services required to meet agency needs.

USSPACECOM requires the following requirements:

Ability/Approval to host software solution in Impact Level (IL) 5 & 6 Clouds Impact Levels are the combination of: 1. the sensitivity of the information to be stored and/or processed in the cloud; and 2. the potential impact of an event that results in the loss of confidentiality, integrity or availability of that information.

IL2 Cloud: DoD information that has been approved for public release (Low Confidentiality & Moderate Integrity) IL4 Cloud: DoD Controlled Unclassified Information (CUI) (e.g., FOUO) IL5 Cloud: DoD CUI & National Security Systems (NSS) IL6 Cloud: DoD Classified information up to SECRET

Information Security: FedRAMP High Impact Level Approval/Compliance

FedRAMP high impact level is the standard for security necessary to protect federal government sensitive and unclassified data in cloud computing environments. The high baseline level lets agencies use cloud computing

March 2018 FOR OFFICIAL USE ONLY Page 3 of 4 environments for high impact data, including data that involves the protection of life and financial ruin. High impact data includes law enforcement, emergency services, healthcare, as well as other industries that handle the government's most sensitive, unclassified data. Breaches to the systems of CSPs that house this data are considered catastrophic as they could potentially shut down government systems and operations, result in economic ruin as well as pose threats to intellectual property and even human life.

Cloud service providers demonstrate FedRAMP compliance through an Authority to Operate (ATO) or a Provisional Authority to Operate (P-ATO) from the Joint Authorization Board (JAB), which develops the FedRAMP accreditation standards.

IV. Identification of the justification/rationale for limiting sources and demonstration of the contractor's unique qualifications to provide the required supply/service.

FAR 8.405-6 requires an ordering activity to justify its actions when restricting consideration of schedule contractors to fewer than required in FAR 5.405-1 or 8.405-2. FAR 8.405-6(b)(1) is the authority being used for this limited source justification as ServiceNow software is peculiar to one manufacturer. Market research was conducted to multiple vendors who all offer similar product. Of the six products reviewed for capability, only one, ServiceNow met the Government's requirements. It is essential to the Government requirements to use ServiceNow as other products were either not GSA FedRAMP High authorized, did not offer all the required EITSM functions based on the ITIL Framework or would require future configuration or sustainment support. The capability the other products offered would create security risks and security risks cannot be accepted.

ServiceNow is the only as-a-Service solution that includes end-to-end management of the EITSM infrastructures as IaaS, SaaS, and/or PaaS via a Service Level Agreement, and meets federal/DoD regulatory requirements pertaining to IL5 and IL6 cloud environments and FEDRAMP high approval. Per DFARS 208.7402, Departments and agencies shall fulfill requirements for commercial software and related services, such as software maintenance, in accordance with the DoD Enterprise Software Initiative (ESI) (see website at http://www.esi.mil/). ESI promotes the use of enterprise software agreements (ESAs) with contractors that allow DoD to obtain favorable terms and pricing for commercial software and related services. The DoD ESI vehicle identifies a single award BPA to Carahsoft for ServiceNow software. Additionally, Air Force Installation Contracting Center (AFICC) Launch Pad shows the ServiceNow software is a mandatory use BPA.

V. Determination by the ordering activity Contracting Officer that the order represents the best value consistent with

FAR 8.404(d).

In reviewing the BPA the Services offered on the schedule are priced at a fixed price for performance of a specific task for implementation and licenses. AFICC has fixed-price services and has made a mandatory use for all contracting offices to utilize in accordance with DFARS 208.7402. Under the scheduled contract the rates have been deemed to be fair and reasonable. Therefore, SAM-D/PK is not required to make a separate determination of fair and reasonable pricing, except for a price evaluation as required by 8.405-2(d). By placing an order against a schedule contract using the procedures in 8.405, SAM-D/PK has concluded that the order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs. Although the PCO has already negotiated fair and reasonable pricing, the SAM-D/PK is requesting additional discounts before placing an order (see 8.405-4).

VI. Description of the market research conducted and the results, or explain why market research was not conducted.

Market research was performed to determine the best software solution which would meet the Government's needs. The Government contacted 6 vendors; ServiceNow, Remedy, Cherwell, SpiceWorks, Solarwinds adn freshservice. Of these vendors, 3 are large businesses and 3 are small businesses. After a review of capabilities, the brand name software, ServiceNow, was selected as the best as-a-service solution which met the Government's requirement for end-to-end management of the EITSM infrastructures as IaaS, SaaS, and/or PaaS via a Service Level Agreement, and federal/DoD regulatory requirements pertaining to the IL5 and IL6 cloud environments and FEDRMPA high approval. Per DFARS 208.7402, Departments and agencies shall fulfill requirements for commercial

March 2018 FOR OFFICIAL USE ONLY Page 4 of 4 software and related services, such as software maintenance, in accordance with DoD Enterprise Software Initiative (ESI) (see website at http://www.esi.mil/) ESI promotes the use of enterprise software agreements (ESAs) with contractors that allow DoD to obtain favorable terms and pricing for commercial software and related services. The DoD ESI vehicle identifies a single award BPA to Carahsoft for ServiceNow software. Additionally, Air Force Installation Contracting Centers (AFICCs) Launch Pad shows the ServiceNow software is a mandatory use BPA.

As a result, the Government is requesting approval of this LSJ to award a FFP contract directly to Carahsoft for the ServiceNow software, as a Service.

VII. Other facts supporting the justification.

The brand name ServiceNow software was selected as the best fit for the Government's needs. ServiceNow software is capable of meeting all Government requirements. IAW per DFARS 208.7402, Departments and agencies shall fulfill requirements for commercial software and related services, such as software maintenance, in accordance with the DoD Enterprise Software Initiative (ESI) (see website at http:// www.esi.mil/). ESI promotes the use of enterprise software agreements (ESAs) with contractors that allow DoD to obtain favorable terms and pricing for commercial software and related services. The DoD ESI vehicle identifies a single award BPA to Carahsoft for ServiceNow software. Additionally, Air Force Installation Contracting Center (AFICC) Launch Pad shows the ServiceNow software is a mandatory use

BPA.

VIII. Actions 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.

Based on DFARS 208.7402, and AFICC Launchpad, Carahsoft, is a mandatory source to procure ServiceNow Software, as a service. Unless the DFARS changes the use of this mandatory source, barriers cannot be removed.

IX. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

X. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.