SF 1013 - JA for FAR 13.5 Sole Source acquisitions 7.16.26..pdf

Treasury Standard Form – 1013 (Rev 12/24)

Prescribed by Treasury: DTAP 1013.501 Tracking No.

DEPARTMENT OF THE TREASURY

SF 1013 - JUSTIFICATION & APPROVAL FOR FAR SUBPART 13.5 SOLE SOURCE

(INCLUDING BRAND NAME) ACQUISITIONS

ACQUISITION TITLE: “Velocity Performance Suite (VPS)Maintenance Support”

1. Identification of the requiring activity and the contracting activity:

The requiring activity is the Internal Revenue Service (IRS) / Office of the Chief Procurement Officer

(OCPO), Information Technology Operation Division, Enterprise Operations Branch (EOps).

2.a Nature and/or description of the action being approved:

The purpose of this Justification and Approval is to obtain approval to renew the Velocity Performance

Suite (zVPS) enterprise license and vendor support to continue monitoring capacity and performance for IBM z/VM and Linux environments on IBM z16 Model 717 mainframes at the Enterprise

Computing Centers in Martinsburg, WV and Memphis, TN.

The zVPS licensing is required for each Integrated Facility for Linux (IFL) engine to support mission-critical IRS systems and programs, including the Security and Communication System (SACS), Computer Assisted Publishing System (CAPS), Linux Lifecycle Program, and Modernized e-File

(MeF).

2.b Name of the vendor. Velocity Software, Inc.

2.c Requisition No.: 5000224678

2.d Bridge contract: ☐ Yes ☒ No 2.e Brand name: ☒ Yes ☐ No

3.a A description of the supplies or services required to meet the agency’s needs:

The Internal Revenue Service requires renewal of the brand-name Velocity Performance Suite (zVPS)

Enterprise License Agreement, including annual software subscription licensing, software maintenance, access to updates, enhancements, new releases, defect corrections, documentation, and

Original Equipment Manufacturer (OEM) technical support provided by Velocity Software, Inc.

The zVPS software is currently installed and operational within the IRS IBM mainframe environment and is used by the Mainframe Operations Branch, IBM Support Team 2, to provide capacity planning, performance monitoring, operational analytics, and visibility for IBM z/VM and Linux environments running on IBM Z Systems mainframes. This capability supports mission-critical IRS systems and programs, including the Security and Communication System (SACS), Computer Assisted Publishing

System (CAPS), the Linux Lifecycle Program, Modernized e-File (MeF), Masterfile, and other Linux on IBM Z workloads.

The acquisition covers two hundred eighty (280) Integrated Facility for Linux (IFL) licenses deployed across four IBM mainframe Central Electronic Complexes (CECs) located at the IRS Enterprise

Computing Centers in Martinsburg, West Virginia, and Memphis, Tennessee. Each active IFL requires a zVPS license to provide capacity and performance monitoring for that IFL’s activity. The SOW identifies the current IRS configuration as two IBM z16 systems and two IBM z15 systems supporting

SACS/CAPS, Masterfile, and z/Linux workloads.

The required zVPS product suite includes the software components necessary to monitor, collect, analyze, and report performance data for z/VM and Linux on IBM Z environments. Velocity’s public product information identifies zVPS as the Velocity Product Suite and identifies components such as zMON, zMAP, zWRITE, zVIEW, and zVWS for performance metrics, reporting, dashboards, and web-based access. Velocity also states that zVPS collects z/VM subsystem data, z/VM guest resource data, Linux on System z data, TCP/IP/network data, and Linux application data.

The required period of performance is one 12-month base period and four 12-month option periods:

July 18, 2026, through July 17, 2031. The SOW also includes FAR 52.217-8, Option to Extend

Services, allowing continued performance for up to six months if exercised by the Government.

3.b Includes IT: ☒ Yes ☐ No 7B21 /NAICS code 541519

Prescribed by Treasury: DTAP 1013.501 Tracking No.

3.c IGCE/Estimated dollar value (include period of performance breakdown): $1,000,178.00.

Base Period: $200,035.60

Option Period 1: $200,035.60

Option Period 2: $200,035.60

Option Period 3: $200,035.60 Option Period 4: $200,035.60

4. Identification of the authority being used (Check the box that applies):

☐ 41 U.S.C. 1901 – Simplified acquisition procedures.

☐ 41 U.S.C. 1903 – Special emergency procurement authority.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

The Velocity zVPS Performance Suite (zVPS) software is required to provide an integrated performance monitoring solution on the z/VM operating system on System z. The Internal

Revenue Service (IRS) is currently using Velocity zVPS software to monitor capacity and performance of the z/VM operating system and Linux environments on the IBM z Series mainframes in support of the SACS/CAPS and Solaris to Linux Migration initiative.

Leecharde Bersamina (IT Specialist) reviewed the Acquisition Gateway in February 2024 and

Internet search on World Wide Web. The only vendor who supports z/VM and Linux on System z is

IBM, with Velocity as their preferred 3rd party vendor for Automated Operations Monitoring and performance reports for z/VM and Linux on System z. Thus, IBM offers no competition for that product.

Risks if not awarded:

The zLinux Migration is a CTO Initiative that started in 2016 and will continue until all Solaris application-based systems have been migrated to a Linux on z platform. Some of the systems already migrated and supported on the Linux on z system are Single Entry Time Reporting (SETR) and

Modernized e-File (MeF).

The zVPS software is necessary for System Performance analytic functions and migrations would be severely impacted without the zVPS software and Velocity vendor support. Failure to Renew would be critical during Tax Season. Failure to supply Performance analytics could also cause schedule slippage to the zLinux Migration project.

Below is a comparison of z/OS products relevant to the essential features of the current ZVPS suite from Velocity Software:

Essential

Features/

Capabilities

Broadcom

VM: Manager

IntelliMagic

Vision for z/OS

IBM z/OS

Monitoring and

Performance

Management

Dynatrace for z/OS

Velocity zVPS

(Velocity

Performance

Suite)

Compatible with IBM z/VM, zLinux, SACS, CAPS, and z/TPF

No No No No Yes

Supports

HTTP server for VM/CMS environments.

No No No No Yes x http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1901 http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1903 i

Collects z/VM, CAPS, SACS, zLinux, and zTPF performance data

No No No No Yes

Seamless z/Pro Integration

No No No No Yes

Security

Integration with the IRS

Yes Yes Yes Yes Yes

6. A 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:

Market research resulted in Velocity Software, Inc. being identified as the only source capable of meeting the Government’s requirements for the brand-name zVPS software license renewal and OEM maintenance support. This brand-name justification will be made publicly available with the solicitation in accordance with FAR 13.501(a)(1)(iv) and FAR 5.102(a)(6).

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer will determine price fair and reasonable using price analysis techniques in accordance with FAR 13.106-3(a). The analysis may include comparison of the proposed pricing to prior IRS awards for the same Velocity zVPS software maintenance requirement, the IGCE, current commercial/OEM pricing, option-year pricing, and any discounts offered to the Government. The prior procurement history and recurring nature of the requirement provide a reasonable basis to evaluate whether the proposed pricing is consistent with historical pricing and the current scope of 280 IFL licenses.

8. A description of the market research conducted (see FAR part 10) and the results or a statement of the reason market research was not conducted:

Market research was conducted in accordance with FAR Part 10 and documented in the attached SF

1010 Market Research Summary Report. The market research included review of the IRS’s existing zVPS production environment, current SOW requirements, prior procurement history, technical input from IRS IBM Support Team 2 personnel, review of public product information, review of available

Government contract vehicles, and comparison of potential alternative monitoring products against the

IRS’s minimum technical requirements.

The market research confirmed that the Government’s requirement is not for a general-purpose monitoring tool or a new performance monitoring capability. The requirement is for continued renewal of the brand-name Velocity Performance Suite (zVPS) already installed, configured, baselined, and used in the IRS IBM z/VM and Linux on IBM Z production environment. The SF 1010 states that zVPS is required to monitor capacity and performance for IBM z/VM and Linux environments supporting SACS, CAPS, the Linux Lifecycle Program, and MeF, and that the scope includes licensing, maintenance, updates, fixes, and vendor technical support for 280 IFL licenses.

The market research also confirmed that IBM identifies Velocity Software products, including zVPS, zTUNE, zPRO, zMON, zMAP, zTCP, and zVWS, as Independent Software Vendor products supported on z/VM 7.4. This supports the Government’s technical conclusion that Velocity zVPS is a recognized z/VM-specific solution for the IBM Z environment.

The SF 1010 comparison of available products determined that the reviewed alternatives, including

Broadcom VM Manager, IntelliMagic Vision for z/OS, IBM z/OS Monitoring and Performance

Management, and Dynatrace for z/OS, did not satisfy the IRS’s essential requirements for compatibility with IBM z/VM, zLinux, SACS, CAPS, and z/TPF; support for the VM/CMS environment; collection of z/VM, CAPS, SACS, zLinux, and zTPF performance data; and seamless z/Pro integration. The comparison found that Velocity zVPS was the only reviewed product that met all required capabilities.

The Government also reviewed available contract vehicle considerations. GSA MAS includes

Information Technology software license and software maintenance categories, and NASA SEWP provides Government-wide IT products and services. However, the availability of a contract vehicle does not by itself establish that another source can provide the proprietary zVPS licenses, OEM support, tested updates, release compatibility, defect corrections, and technical support required for the

IRS installed zVPS environment.

No additional RFI or sources-sought notice was issued because the requirement is a brand-name renewal of proprietary software already deployed in the IRS production mainframe environment.

Additional market outreach for non-Velocity substitute products would not meet the Government’s need because the IRS requires continued licensing and maintenance of the existing zVPS software suite, not a replacement product. Replacing zVPS would require a new technical solution, transition effort, testing cycle, security review, operational baselining, training, and migration plan, and would introduce unacceptable risk to mission-critical IRS workloads during the period of performance.

Based on the market research conducted, Velocity Software, Inc. is the only source identified as capable of meeting the Government’s requirements for zVPS software licensing, maintenance, updates, defect correction, and vendor technical support for the IRS IBM z/VM and Linux on IBM Z environment. The SF 1010 Market Research Summary Report, SOW, IGCE, and this justification are included in the acquisition file to support the sole-source/brand-name determination.

9.a Any other facts supporting this justification:

Velocity zVPS is currently installed, configured, and operational within the IRS IBM z/VM and

Linux on IBM Z environment. The software supports mission-critical IRS workloads and provides the Government’s existing capacity planning and performance analytics capability for 280 IFL licenses across IRS enterprise computing centers. A lapse in licensing or OEM support could result in loss of performance visibility, delayed incident response, unresolved software defects, compatibility risk with future z/VM updates, and increased risk to production workloads during peak filing-season operations. The attached SOW and SF 1010 Market Research Summary Report further support the technical and market basis for this sole-source/brand-name action.

9.b Attachments: ☒ Yes ☐ No Acq Plan, SOW, MRSR and IGCE

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition:

No sources other than Velocity Software, Inc. have expressed written interest or demonstrated capability to provide the required brand-name zVPS licenses, OEM maintenance, software updates, defect corrections, and technical support for the IRS installed zVPS environment. If any source expresses interest in response to public notice or solicitation posting, the Contracting Officer will evaluate the response in accordance with FAR and Treasury procedures.

11. A statement of the actions, if any, the Requiring Activity or Contracting Activity may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

“The Requiring Activity will continue to monitor the marketplace before future renewals to determine whether any other commercial product can meet the IRS’s technical, operational, security, compatibility, and continuity requirements for IBM z/VM and Linux on IBM Z performance monitoring. Prior to any future acquisition, the Government may review available products, reseller

Prescribed by Treasury: DTAP 1013.501 Tracking No.

availability, contract vehicles, and technical alternatives. However, unless another product can provide equivalent z/VM and Linux on IBM Z data collection, capacity planning, VM/CMS support, zVPS/zPRO integration, historical performance continuity, and OEM-supported migration without unacceptable operational disruption, the requirement is expected to remain limited to the brand-name Velocity zVPS software.”

12. Certifications and Approvals:

12.a Program Office certification (Requiring Activity). I hereby certify that any supporting information and data provided, which form the basis for this justification, are accurate and complete to the best of my knowledge and belief.

Name: Mark Bernard Date:

Mark E. Bernard Digitally signed by Mark E. Bernard

Signature: Date: 2026.07.06 14:23:33 -05'00'

12.b Contracting Officer certification and approval. I hereby determine the circumstances of this acquisition support the justification to acquire the item(s) on a sole source (including brand name) basis under the authority of FAR subpart 13.5. I also certify this justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve this justification.

Name: Fatima Paen Date:

Fatima A. Paen Digitally signed by Fatima A. Paen

Signature: Date: 2026.07.07 07:33:08 -04'00'

13. Additional Reviews and Approvals (As applicable):

13.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $90 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $15 million to the Associate Bureau CIO(s).)

Name: Date:

Signature:

13.b Advocate for Competition (if over $900,000, but not exceeding $20 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the Advocate for competition, I hereby approve this justification.

Name: Date:

Signature:

13.c Head of the Procuring Activity or Authorized Designee (if over $20 million, but not exceeding $90 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this justification.

Name: Date:

Signature:

13.d Treasury Chief Information Officer (for IT requirements that are over $90 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and

Julius Bradshaw 7/16/2026

Prescribed by Treasury: DTAP 1013.501 Tracking No.

belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

13.e Senior Procurement Executive (if over $90 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Therefore, as the senior procurement official, I hereby approve this justification.

Name: Date:

Signature: