Sole Source Justification- Systems Technology Group - Final - Signed.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

FAR subpart 13.106-1(b), Soliciting from a Single Source

Software Maintenance for existing Microsoft Retail Management System Version 2.0 licenses in support of GSA Enhanced Check Out version 2 (GECO 2)

1. AGENCY AND CONTRACTING ACTIVITY:

Requiring Activity:

General Services Administration (GSA)

Federal Acquisition Service (FAS)

General Supplies and Services (GSS)

Business Operations Division (BOD)

1800 F Street NW

Washington, DC 20405

Contracting Activity:

General Services Administration (GSA)

Federal Acquisition Service (FAS)

General Supplies and Services (GSS)

Acquisition Management (AM)

1800 F Street NW

Washington, DC 20405

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

The statutory authority allowing other than full and open competition is Federal Acquisition

Regulation (FAR) subsection 13.106-1(b). The acquisition is in accordance with FAR Part 12 and FAR Part 13.

Note: FAR Part 6 does not apply per FAR subpart 6.001(a) based on this requirement being under the Simplified Acquisition Threshold and being procured in accordance with FAR Part

13.

The requirement for which approval is sought is for annual license maintenance for the

Microsoft Retail Management System (RMS) Version 2.0 software. This software is the Point of Sale (POS) software associated with checkout lanes used in stores within the GSA Enhanced

Check Out version 2 (GECO 2) system. The checkout system is one of the multiple channels that make up the key purchasing solutions for GSA’s DoD and Federal civilian agency customers worldwide. GECO 2 is utilized in 34 GSA Fourth Party Logistics (4PL) brick-and-mortar stores worldwide with approximately $375M in sales annually.

Systems Technology Group, Inc. is currently providing this requirement under contract

47HAA019P0022 , which ends on September 12, 2020. GSA requires continued licensing.

Contract 47HAA019P0022 was a sole-source acquisition.

A contract would be awarded to:

Systems Technology Group, Inc.

3218 Lake Shore Road

Buffalo, NY, 14219-1412

Contemplated Contract Type: Firm Fixed Price

Proposed Approach under Consideration: GSA intends to make a sole source award to

Systems Technology Group, Inc. Systems Technology Group, Inc. is the only known source that can meet the Government’s needs. No other capable sources were found during market research.

Period of Performance. The period of performance will be one year of annual maintenance. The period of performance is September 12, 2020 through September 11, 2021. No maintenance will be available for option periods as the license and associated maintenance will have reached the end of life and will no longer be available in the market.

3. DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET

AGENCY’S NEEDS:

GSA requires annual license maintenance for the existing Microsoft Retail Management

System Version 2.0 licenses in support of GSA Enhanced Check Out version 2 (GECO 2).

This software is the Point of Sale (POS) software associated with checkout lanes used in stores within the GSA Enhanced Check Out version 2 (GECO 2) system. The checkout system is one of the multiple channels that make up the key purchasing solutions for GSA’s DoD and Federal civilian agency customers worldwide. GECO 2 is utilized in 34 GSA Fourth Party Logistics

(4PL) brick-and-mortar stores worldwide.

The specific license maintenance information is as follows:

Item Part Number Description

001 EQ20339 Annual Software Maintenance RMS Version 2.0 EQ20339, Serial #5996180

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

The statutory authority permitting other than full and open competition is FAR Subpart

13.106-1(b). FAR 6 does not apply as this procurement is in accordance with FAR part 13.

The Contracting Officer attempted to find alternate resources and to enhance competition in accordance with FAR subpart 13.104(b). This is further documented in the market research document in the contract file. No other sources were found. As this license and associated maintenance is reaching the end of life, sourcing is limited.

GSA has determined through market research that the procurement requires brand name specific products in order to satisfy the Agency’s need. Microsoft Retail Management

System (RMS) Software Maintenance has been identified as a brand name product that will satisfy the requirements of the Agency as outlined above. The Microsoft RMS license is already incorporated into the GECO 2 system. No new licenses are being purchased. This requirement is for annual maintenance of existing licenses only.

5. SUPPORTING INFORMATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS REQUIRES THE USE OF ONLY ONE RESPONSIBLE

SOURCE AUTHORITY:

GSA purchased Microsoft RMS 7 years ago from nChannel as part of the GECO contract for the

GECO2 application. nChannel no longer offers this software or associated maintenance. Subsequent annual software maintenance has been awarded to vendor Systems Technology Group.

Systems Technology Group is the current provider of this annual software maintenance for RMS

Version 2.0. The current contract number is 47HAA019P0022 and expires on September 11, 2020. The current contract was a sole-source purchase.

As stated above, the RMS software is currently utilized for the GECO 2 solution that is currently being utilized in GSA’s 4PL stores worldwide. The software is already in place and is therefore compatible with the solution as it is a key component of GECO 2.

The RMS software has reached its end of life, with Microsoft planning no future development for the software. The purchase of extended support will no longer be available for existing customers as of July

2021. The software is no longer sold to new customers based on it being phased out of the market. As a result, sourcing for this annual maintenance is limited. The program is researching transitioning away from using the RMS software.

002 EQ29327 Annual Software Maintenance RMS Version 2.0 EQ29327, Serial #6577752

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY SOURCES AS PRACTICABLE:

Multiple businesses were contacted and indicated that while they used to offer annual maintenance for

RMS licenses, they no longer offer this item as it is reaching its end of life.

7. DETERMINATION THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE:

An Independent Government Estimate (IGE) was developed by the technical and program experts associated with this requirement. The IGE and historical pricing will be utilized as a tool to gauge whether or not the price quote for this requirement is fair and reasonable.

8. DESCRIPTION OF MARKET RESEARCH CONDUCTED:

Multiple vendors were contacted to increase competition in accordance with FAR subpart

13.104(b) based on the dollar value associated with this procurement.

9. LIST OF SOURCES EXPRESSING WRITTEN INTEREST IN THIS

ACQUISITION, IF ANY:

No other known sources were located in the marketplace for this requirement.

10. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

None.

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE

MAKING ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR

SERVICES REQUIRED:

GSA is in the process of migrating away from the current architecture and resultant dependence on the Systems Technology Group proprietary middleware software. It is anticipated that, by the end of the period of performance listed in Section 2 above, a new system will be operational and this barrier to competition will no longer exist. Additionally, the license will no longer be available in the market.

12. APPROVALS

TECHNICAL REQUIREMENTS PERSONNEL CERTIFICATION:

I hereby certify that any supporting data (e.g. verifying the Government’s minimum needs or scheduled requirements or other rationale for other than full and open competition), which form a basis for this justification, are complete and accurate.

8/19/2020

X Lloyd A. Aucoin III

Lloyd A. Aucoin III

GECO-2 COR, General Supplies & Services, Busi...

Signed by: LLOYD AUCOIN

CONTRACTING OFFICER CERTIFICATION:

By signing this justification the Contracting Officer certifies that the facts and statements made are accurate and complete.

Contract Specialist/Contracting Officer

GSA/FAS/GSS Central Office Acquisition Division

CONCURRENCE:

Senior Contracting Officer/Branch Chief, QSABB

GSA/FAS/GSS Central Office Acquisition Division