Sole Source Justification.docx

SOLE SOURCE JUSTIFICATION (SSJ)

UNDER THE SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY

Agency: Social Security Administration

Project Title: Maintenance for Kofax eFlow

Proposed Contractor: Kofax, Inc.

Tracking Information: Advanced Procurement Plan (APP) #: DCS-21-313C2 Relevant current/previous order #: 28321320C00060001 Purchase Request # 3303-21-1001

Period of Performance: 11/1/20 – 10/31/21

2. NATURE OF ACTION BEING APPROVED

Type of Action:

_X__ New award ____ Modification of existing award, number ______________________

Contemplated Contract Type:

__X_ Firm fixed-price ____ Time and materials/labor hour ____ Combination

We seek approval of a SSJ to obtain the following:

____ Expansion of mainframe software licensing required for compliance with our license agreement, due to agency mainframe hardware capacity increases. Since commercial mainframe software companies commonly license software based on the capacity of the mainframe hardware on which we install software, we are responsible for expanding our mainframe software licenses commensurate to the hardware capacity each time we upgrade mainframe hardware.

__X_ Maintenance of Kofax eFLOW software manufactured by Kofax, Inc.

Procedures in FAR 13.5 are being used, in accordance with 41 U.S.C. 1901.

3. DESCRIPTION OF SUPPLIES/SERVICES AND ESTIMATED VALUE

Estimated Value: {REDACTED}

Kofax’s eFLOW software products are an integral part of SSA’s image-based workload at Wilkes-Barre Data Operations Center, Mid-Atlantic Payment Service Center and the Wabash SSA office. These subsystems utilize Kofax eFLOW Unified Platform products. SSA use these systems to process critical papers to image workloads. We currently deploy eFLOW software for the following workload projects:

· Annual Wage Reporting

· Representative Payee Reports

· Medicare Part D

· Beneficiary Re-contact

· Medicare Subsidy Change Event

· Medicare Post Card Outreach Program

· Continuing Disability Report

· Itemized Statements of Earnings and more

The maintenance subscription for Kofax’s eFLOW software includes updates, fixes and patches, as well as online and telephone technical support, allowing the software to remain operational in a changing environment.

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901, as implemented by the Federal Acquisition Regulation (FAR) 13.5—“Simplified Procedures for Certain Commercial Items.”

The acquisition is “commercial” in nature, as defined at FAR Section 2.101, and will be solicited using FAR Part 12, as well as the procedures outlined at FAR 13.106-1(b)(1)(i) (i) Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

The basis for restricting competition is that a reasonable basis exists for concluding that the agency’s minimum needs can only be satisfied by:

____ (1) Unique supplies or services available from only one source or only one supplier with unique capabilities _X__ (2) The existence of limited rights in data, patent rights, copyrights, or secret processes; the control of basic raw material; or similar circumstances, make the supplies and services available from only one source

Please note:

__X_ Kofax, Inc. is the only Open Market authorized provider of Kofax, Inc. maintenance subscription

____ There are several authorized Open Market resellers of Software Company Inc. licenses and maintenance subscriptions.

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS

Kofax, Inc. is the copyright holder for eFLOW software. Only Kofax, Inc. has the right to issue a license for this software. Only Kofax, Inc. has legal access to the proprietary source code necessary to provide software maintenance. Software maintenance includes a subscription to version upgrades, updates, fixes and patches, as well as telephone support for resolving issues.

Continued maintenance of these products is essential. Access to upgrades, updates, and fixes and patches ensures software continues to be compatible with the operating system and is in good working order.

6. EFFORTS MADE TO SOLICIT FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

__X_ FedBizOpps Sources Sought/Request for Information was not posted due to this acquisition being for a follow-on subscription renewal/maintenance.

____ FedBizOpps Sources Sought posted from XX/XX/XXXX to YY/YY/YYYY, and a copy is included in the contract file.

____ FedBizOpps Synopsis of Proposed Contract Action posted from XX/XX/XXXX to YY/YY/YYYY, and a copy is included in the contract file.

____ Responses received listed under item 10 below.

____ No responses received.

Based on the results of the posting, as well as market research described in item 8 below, we do not believe there are any entities other than authorized resellers with similar capabilities at this time.

7. DETERMINATION BY THE CO THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE PRICE

In accordance with FAR Part 15.404, the CO will perform a final price analysis in order to determine the eventual awardee’s proposed price is fair and reasonable.

8. DESCRIPTION OF MARKET RESEARCH

See Section 6 above.

These software products are proprietary products licensed to the agency. Market research has confirmed that Kofax, Inc. is the copyright holder of this software; therefore, the only known source capable of providing the required maintenance is Kofax, Inc.

Additionally, _X__ We used market research conducted within 12 months of the anticipated award date. Therefore, we consider the information still current, accurate, and relevant.

_X__ When examining whether this is a requirement for Commercial vs Non-Commercial items, market research helped determined that this requirement involves _X__ A) Items of a type customarily available in the commercial marketplace;

____ B) Items of a type customarily available in the commercial marketplace with modifications; or ____ C) Items used exclusively for governmental purposes (i.e. not commercially available).

____ Market research helped determine ____ Customary practices regarding customizing, modifying, or tailoring of items to meet customer needs and associated costs;

____ Customary practices, including warranty, buyer financing, discounts, contract type considering the nature and risk associated with the requirement, etc., under which commercial sales of the products or services are made;

____ Requirements of any laws and regulations unique to the item needed;

____ Availability of items that contain recovered materials and items that are energy efficient;

____ Distribution and support capabilities of potential suppliers, including alternative arrangements and cost estimates; and ____ Size and status of potential sources (see FAR Part 19).

_X__ Techniques for conducting market research include any or all of the following:

____ (i) Contacting knowledgeable individuals in government and industry regarding market capabilities to meet requirements.

_X__ (ii) Reviewing the results of recent market research undertaken to meet similar or identical requirements.

____ (iii) Publishing formal requests for information in appropriate technical or scientific journals or business publications.

____ (iv) Querying the government-wide database of contracts and other procurement instruments intended for use by multiple agencies available at https://www.contractdirectory.gov/contractdirectory/ and other government and commercial databases that provide information relevant to agency acquisitions.

____ (v) Participating in interactive, on-line communication among industry, acquisition personnel, and customers.

____ (vi) Obtaining source lists of similar items from other contracting activities or agencies, trade associations or other sources.

_X__ (vii) Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line.

____ (viii) Conducting interchange meetings or holding presolicitation conferences to involve potential offerors early in the acquisition process.

____ Additional information, sources, comments

9. ANY OTHER SUPPORTING FACTS

Presently the most efficient and effective approach known to the government, is to continue to utilize Kofax eFLOW as a software solution and renew maintenance as replacing our current Kofax suite of software products with other software products

· may be technically impossible in some instances;

· will require running dual programs and applications that may interfere with integrated network management and data exchange;

· will take time, we estimate up to several years, to replace currently installed software effectively, which will of necessity require not just installation of the software, but also extensive re-training of staff, While the agency has not ruled out replacing the software at some point in the future, the time, expense, and performance risk to the agency of implementing a replacement must be factored into our long term IT moderation plans. Therefore, it is determined to be in the best interest of the government not to pursue such a replacement undertaking at this time.

In accordance with FAR 4.1102, 4.1201, and 9.401, upon selection of an awardee, the CO will examine the System for Award Management in order to make an affirmative determination of the contractor’s responsibility.

10. LIST OF SOURCES EXPRESSING INTEREST IN THE ACQUISITION IN WRITING

No other sources have expressed an interest in this acquisition.

11. ACTIONS AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION IS REQUIRED

We will continue to survey the market place by synopsizing our requirement and reviewing product literature and capability statements submitted by the vendor community.

CONTRACTING OFFICER’S TECHNICAL REPRESENTATIVE (COTR) AND PROGRAM OFFICIALS’ RECOMMENDATION

AND CERTIFICATION

The COTR and other program officials hereby certify that the information provided in support of the justification for an exception to fair opportunity, and which forms the basis for this justification, is accurate and complete.

CERTIFICTION BY THE CONTRACTING OFFICER AND

OTHER CONTRACTING OFFICIALS

The contracting officer and other contracting officials hereby certify that the information provided in support of this justification for an exception to fair opportunity is accurate and complete to the best of their knowledge and belief.