SP_S-10700-00003368_CA-Broadcom_DCS_Approved~2.pdf

SP_S-10700-0003368_CA Software Licensing & Services Page 1 of 12

REQUEST FOR SPECIAL PROCUREMENT No. S-10700-00003368

PART A. Requesting Agency must complete Items 1 through 13.

1. Requesting Agency Name: Department of Administrative Services, Procurement Services (“DAS PS”) on Behalf of DAS Enterprise Information Services (“EIS”), Data Center Services (“DCS”)

2. Date of Request: April 2022 3. Agency Number: 107009

4. Agency Contact Name: Rachel Smith 5. Phone: 971-707-0263

6. Type of Request: Class Special Procurement ___X__ Contract-specific Special Procurement

7. Time Period Requested: From: 6/30/2023 To: 6/29/2028

8. Total Estimated Cost: $25,000,000.00

9. Title: Supplies and/or Services to be Acquired: Continued CA/Broadcom Software License and Support Services

10. Request, Background and Proposed Contracting Procedure:

a. Request:

DAS PS, on behalf of DCS, requests approval of this Special Procurement (“SP”) #S-10700-00003368 to directly negotiate and award a new Master Agreement (“Contract”) to CA Technologies, a Broadcom Company (formerly CA, Inc.) (“Contractor” or “CA”) for:

a. CA Software Licensing:

Perpetual Licensing Subscription Licensing Usage and Maintenance Fee (“UMF”) Licensing

b. CA Professional Services

c. CA Education Services

b. Background:

2005: The Oregon State Legislature approved funding for the Computing and Networking Infrastructure Consolidation (“CNIC”) project; the mission of which was “To reduce costs while maintaining or improving service levels through consolidation of the state’s computing and networking infrastructure.” CNIC was also to be an opportunity for network service convergence and enhancement to support greater efficiency and security. A central element of CNIC was the construction of a new data center facility to allow consolidation of the State’s three main data centers and many of the individual servers and storage systems maintained by state agencies.

2006: The enterprise state data center (aka DCS) was stood up with 11 of the largest state agencies dropping into the new, centralized environment. The assembly and coordination of the many contracts for the licensing, maintenance and servicing of the information systems, equipment, and software involved in this multi-agency consolidation presented major challenges. DAS discovered that a significant number of agreements, licenses, and other documentation of contracts by which the agencies

SP_S-10700-0003368_CA Software Licensing & Services Page 2 of 12 that consolidated into DCS secured their rights to use systems components, software, and maintenance services could not be located.

2007: Request for Special Procurement #064-2007, executed April 24, 2007, authorized DAS to use informal contracting procedures to support the existing (consolidated) state information systems including hardware, software, licensing, maintenance, and servicing. SP #064-2007 was amended one time, which changed the number to SP #316-2009. This SP supported DCS through the consolidation and stabilization phases and expired by its terms on April 30, 2011.

2010: With the data center consolidation phase completed and the environment stabilization phase well underway, DCS began shifting its focus to eliminating redundancies, improving operational efficiencies and cost containment activities (optimization phase). DCS identified hundreds of redundant software products at various versions, with different configurations and support levels, all of which were performing the same functions. To reduce out of pocket costs and standardize the environment, SP-455- 10 (”SP Attachment-2”) was approved November 10, 2010 and enabled a process through which DCS could compete and evaluate like-software products currently deployed in its enterprise environment and select the product or service providing the best value for the State.

20ll: In line with the procurement process set out in SP-455-10, DCS competed and evaluated all in-house instances of Scheduler Tool software products. The three involved software providers were invited to participate and demonstrate their enterprise solutions including ASG Software Solutions (“ASG”), BMC Software (“BMC”), and CA. CA prevailed as the highest scored and ranked software provider.

April 5, 2011: Contract #4922263 was issued leveraging CA’s federal contract (GSA Schedule) #GS-35F-0823M as permitted in Oregon Revised Statute (“ORS”) 279A.180, Oregon Administrative Rule (“OAR”) 125-246-0360, and Delegation Agreement #545-10.

Under this contract, CA was required to convert all existing Scheduling products (ASG, BMC, and CA) to CA’s Workload Automation EE; the new Scheduling product.

June 16, 2011: Given the numerous CA software products operating within the state data center at that time (“SP Attachment-3”), and to reduce the number of disparate contracts while leveraging the best pricing for the state, DAS conducted Sole Source Procurement #102-1862-11 in accordance with ORS 279B.075 and OAR 125-247-0275.

June 30, 2011: Master Agreement #102-1536-11 (“MA”) was executed with an initial 5-year term (June 30, 2011 – June 29, 2017), and effectively consolidated the License Fees, Maintenance Fees, and Subscription Fees (as applicable) for the mainframe and distributed software (collectively “Software Package”) set out in SP Attachment-3, Exhibit A.

2017: DCS issued Purchase Order #9366 under the MA, which extended the Term an additional 4-years; June 30, 2017 – June 29,2021.

2021: DCS issued Purchase Order #13327 under the MA, which extended the Term 1-year; June 30, 2021 – June 29, 2022.

2022: Leveraging SP-514-11, DCS issued Purchase Order #14362 under the MA, which extended the Term one final year, June 30, 2022 – June 29, 2023, to provide enough time for negotiation and award of the new, anticipated Contract; the subject of this SP Request.

SP-514-11 was executed July 26, 2011 and provides a procurement process through which DCS can obtain continued maintenance and support services through the optimization phase for software and hardware currently within its environment. SP-514-11 will expire December 31, 2024.

The total spend to date under the MA is $21,431,868.60.

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c. Current Need:

DAS PS, on behalf of DCS, seeks approval of this SP Request to directly negotiate a new Contract with CA for the Software Package and Services for periods up to five (5) years and within the maximum not-to-exceed compensation of $25,000,000 given the follow findings of fact:

1. The MA will expire June 29, 2023.

2. To carry out its charge and provide uninterrupted services and support to State agency users, DCS must continue to maintain the CA products currently within its environment (“SP Attachment-1”).

3. Although the individual CA software products are available through Software Value-Added Resellers (“SVARs”), CA is the sole provider of the Software Package (suite of software products currently within DCS’ environment) including related maintenance and support services and professional services. CA provides the Software Package and related Services to DCS at significantly reduced pricing than what an SVAR can offer.

d. Proposed Contracting Procedure:

1. As required by OAR 125-247-0287, DAS PS will issue a public notice regarding approval of this SP on the OregonBuys eProcurement system for a period of seven (7) calendar days.

2. The public notice will include provisions that any affected party may protest the approval of the SP.

3. DAS PS, working with DCS, will respond to and resolve all protests, if any.

4. If no protests to this SP are received or sustained, DAS PS, on behalf of DCS, will proceed with directly awarding, negotiating, and issuing the Contract to CA for the software maintenance and support services set out in this SP.

5. DAS PS will work with EIS and obtain its endorsement prior to executing the Contract, as required.

6. Pursuant to OAR 137-045-0015, DAS PS will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing the Contract, as required.

11. Justification for use of Special Procurement:

The State has had a direct contractual relationship with CA for over 10 years. CA is the only entity that can provide the ongoing licensing, maintenance, and support services for the Software Package.

Considering the markup introduced through third-party resellers (SVARs) it is cost prohibitive for DCS to obtain each individual CA software product, support services, education services, and managed services from one or more SVAR.

CA’s pricing for the Software Package and related-Services is approximately 15% less than what a SVAR can offer.

There are no replacement products for every CA product currently in use.

Continuity is extremely important, especially now. The majority of DCS mainframe customers are in varying stages of their own Mainframe Modernization efforts. DCS mainframe customers include:

o Oregon Health Authority (“OHA”) o Oregon Department of Human Services (“DHS”) o Oregon Department of Transportation (“ODOT”) o Oregon Employment Department (“OED”) o DAS

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These state agencies - and others - would not be able to support converting to other mainframe software products in the midst of their own Mainframe Modernization efforts.

Optimum Services are – and have been - best provided directly by CA, the software manufacturer.

o Higher levels of support are available with faster response times.

o Annual software key (license) renewals are faster and more efficient directly through CA.

DCS has previously encountered software key delays from other providers, which required quick acquisition and installation of temporary keys to maintain uninterrupted support services to its state agency customers.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

___X___ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

At the time the State conducted the Sole Source procurement, CA Technologies was the sole provider of the Software and Services. CA has since been acquired by Broadcom, Inc., which opened the product line to SVARs. However, to obtain the necessary licensing and Services for the CA software products currently within DCS’ environment, DCS would have to work through two or more layers of SVARS or contractors.

DAS currently has one Information Technology (“IT”) SVAR Price Agreement (“PA”) in place with SHI International Corporation (“SHI”); PA #6454.

o SHI does not currently have an agreement with CA, which means SHI would have to obtain CA Software licensing through another SVAR. This would introduce two pricing mark-ups, one from each SVAR, and significantly increase overall costs to DCS.

o Services are not available under SHI PA #6454. DCS would have to pursue software support Services and professional Services under different PAs or contracts, or conduct separate procurement processes. Again, this would likely increase costs to DCS and may introduce service level inconsistencies.

If a new procurement process is required, it could potentially result in three (3) or more separate contracts; one for software licensing, one for software support services, and one for professional services (e.g., training, education), all of which are currently provided under one contract directly from the software manufacturer (CA) at the best possible pricing and consistent service levels.

o Three or more separate contracts would increase DCS’ contract administration responsibilities and possibly introduce challenges navigating software support services.

o Software support services include installation of product updates, migrations for major software releases, and remote troubleshooting. Obtaining software updates or major releases from one contractor and the related installation or migration support services from another contractor is neither efficient nor desirable.

Some CA products currently provided in DCS’ CA Software Package cannot be replaced because there are no ‘like’ products available in the market.

and

___X___ (b)(i) will result in substantial cost savings to the contracting agency or to the public because:

CA, as the owner and provider of the licensed products, can provide the State with the best pricing.

Obtaining the Software and Services from an SVAR would introduce an additional 5-20% over and above the current cost from CA. The following Table 12.B demonstrates the additional costs DCS estimates it

SP_S-10700-0003368_CA Software Licensing & Services Page 5 of 12 would incur over the 5-year period of performance requested in this SP using an average of 12.5% as an example.

TABLE 12.B

Description Annual 2022 CA Costs

Estimated Annual 2022 SVAR Costs

(Using the average of 12.5%)

Estimated Yearly Savings (purchasing direct from CA)

Total Estimated 5-Year Savings (purchasing direct from CA)

CA Suite of Products (Software Package including Services)

$3,200,000 $3,600,000 $400,000 $2,000,000 or

___X___ (b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because:

Continuity is especially important right now to support the multiple DCS customers currently undertaking Mainframe Modernization projects. To ensure successful outcomes, these modernization projects impose extensive time commitments and the dedication of substantial internal resources. The work effort to retrain DCS support staff and end users (DCS customers) and create and execute conversion plans for a different suite of software products would overwhelm state resources, which are already stretched thin.

A major component of DCS’ CA Software Package is the backup and restore application, which allows data to be restored from an earlier point in time to help DCS state agency customers recover from an unplanned event(s). Unplanned events can occur when data is accidentally deleted or something causes data to become corrupted or unreadable from viruses, formatting errors, and so

on. DCS state agency customers include, but not limited to:

o OED o ODOT o DHS o OHA o DAS o Oregon State Legislature

These state agencies provide vital services to Oregonians. Corruption or loss of data with no ability to restore the data to a pre-unplanned event state would:

o negatively impact the affected agency’s ability to deliver uninterrupted services to its customers.

o negatively affect Oregonians receiving services from these state agencies (for example).

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request if it is submitted through ORPIN. Agency may elect to attach a signed Request.

Signature: e.g. Electronically in OregonBuys _________________ Type Name Date

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PART B. The Department of Administrative Services completes Part B.

STATUTORY AND RULE AUTHORITY:

ORS 279B.085(2) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(4) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the Director will:

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and

(b)(A) Result in substantial cost savings to the contracting agency or to the public; or

(B) Otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.

OAR 125-246-0170 delegates the authority of the Director of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125-247-0285 through 125-247-0288 implement ORS 279B.085.

OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief Procurement Officer as the Contract Review Authority.

FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

CONDITIONS OF APPROVAL:

1. Notice Period. The Authorized Agency shall post the Public Notice on ORPIN. The Special

Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125-247-0287(4), and either:

a. No Written protests are received by the Contract Review Authority, State Chief Procurement Officer, from an Affected Person in response to the notice, or

b. If any protest is received during the notice period, then not until:

i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137-047-0700, and

ii. confirms in writing the first possible date of use of the Special Procurement.

2. ORS 279A.165 Requirements. Authorized Agency shall comply with the requirements of ORS 279A.165 and OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

3. Authorized Agency shall comply with all Enterprise Information Services (“EIS”) conditions and requirements prior to contract execution, if any.

APPROVED:

Kelly Mix, State Chief Procurement Officer, Date Department of Administrative Services

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SP Attachment-1

Current CA/Broadcom Products (Software Package)

On-Premise Software:

Prior Contract No

Product Name Product Code License Type

Serial # Authorized

Use

Limitation

Start Date End Date

50906746 PanAudit Plus

MSU

PNAMSU002 UMF 40290336+1450- PNAMSU002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Easytrieve Report Generator Option for Db2 MSU

EDBMSU002 UMF 40290336+1275- EDBMSU002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 View for z/OS Plus MSU

VIEBAU002 UMF 40290336+1600- VIEBAU002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Spool Print Management Plus MSU

SPLBAU002 UMF 40290336+1525- SPLBAU002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Copycat Utility

MSU

CATMSU002 UMF 40290336+1025- CA90SV002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Endevor Quick Edit MSU

ENQEOU002 UMF 40290336+1200- ENQEOU002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Endevor Extended Processors

MSU

ENPROU002 UMF 40290336+1225- ENPROU002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Easytrieve Report Generator Option for IMS

MSU

EIMMSU002 UMF 40290336+1300- EIMMSU002 216 MSU Jun 30, 2022 Jun 29, 2023

SP_S-10700-0003368_CA Software Licensing & Services Page 8 of 12

Contract No

Product Name Product Code License Type

Serial # Authorized

Use

Limitation

Start Date End Date

50906746 Disk Backup and Restore

MSU

DSKMSU002 UMF 40290336+1075- DSKMSU002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Easytrieve Report Generator for z/OS Plus

MSU

EZTMSU002 UMF 40290336+1250- EZKCIC002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Spool Option for AFP Bundle Transformers

MSU

OUTAFU002 UMF 40290336+977- OUTAFU002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Vtape Virtual Tape System

VTPBAS002 UMF 40290336+425- MSMNGR002 40 Tape Device

Jun 30, 2022 Jun 29, 2023

50906746 Deliver Plus

MSU

DLVBAU002 UMF 40290336+1050- DLVBAU002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Optimizer/II for z/OS Plus

MSU

OP2BAU002 UMF 40290336+1800- OP2BAS002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 OPS/MVS

Event Management & Automation for JES2 Plus

MSU

PVLA2M002 UMF 40290336+1400- PVLA2M002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 OPS/MVS

Event Management & Automation Multi-System Facility MSU

OPSMSM002 UMF 40290336+1425- OPSMSM002 216 MSU Jun 30, 2022 Jun 29, 2023

SP_S-10700-0003368_CA Software Licensing & Services Page 9 of 12

Product Name Product Code License Type

Serial # Authorized

Use

Limitation

Start Date End Date

50906746 CA 1 Tape Management

MSU

ONEMSU002 UMF 40290336+1000- DATADX002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Endevor® Software Change Manager Interface for Remote Db2 for z/OS MSU

EDRMSU002 UMF 40290336+1100- MSMNGR002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Roscoe Interactive Environment

MSU

ROSBAU002 UMF 40290336+1500- MSMNGR002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 OPS/MVS

Event Management & Automation Switch Operations Facility MSU

OPSSOM002 UMF 40290336+400- PVLSOF002 216 MSU Jun 30, 2022 Jun 29, 2023

50906746 AllFusion 2E Change Management Receiver Mod

2EPCMR046 Subscrip tion

N/A 1 Designated

CPU

Jun 30, 2022 Jun 29, 2023

50906746 Panvalet PVABAS002 Subscrip tion

N/A

216 MSU

Jun 30, 2022 Jun 29, 2023

Vantage Storage Intelligence

MSU

VNTINU002

Subscrip tion

216 MSU Jun 30, 2022 Jun 29, 2023

SP_S-10700-0003368_CA Software Licensing & Services Page 10 of 12

Product Name Product Code License Type

Serial # Authorized

Use

Limitation

Start Date End Date

Performance Suite for Db2 for z/OS MSU

DBPRMU002 Subscrip tion

216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Panvalet Option for

ISPF

PVASPF002 Subscrip tion

N/A 216 msu

Jun 30, 2022 Jun 29, 2023

SYSVIEW

Performance Intelligence

MSU

SYSMSU002 Subscrip tion

216 MSU Jun 30, 2022 Jun 29, 2023

50906746 DX APM Full Stack Monitoring On Premise

DXAPMO990 Subscrip tion

N/A 6 Device Jun 30, 2022 Jun 29, 2023

Administration Suite for Db2 for z/OS MSU

DBADMU002 Subscrip tion

216 MSU Jun 30, 2022 Jun 29, 2023

50906746 CA Harvest Software Change Manager Premium Edition Named Users

CCCHOP990 Subscrip tion

N/A 10 User Jun 30, 2022 Jun 29, 2023

50906746 Workload Automation Agent EE

WKLAEE990 Subscrip

N/A 24 Agent Jun 30, 2022 Jun 29, 2023

SP_S-10700-0003368_CA Software Licensing & Services Page 11 of 12

Product Name

Product Code License Type

Serial # Authorized

Use

Limitation

Start Date End Date

50906746 Workload Automation Restart Option EE

ENCWLA002 Subscrip tion

N/A

216 MSU

Jun 30, 2022 Jun 29, 2023

50906746 Change Manager Enterprise Workbench

ENTCCM059 Subscrip tion

N/A 1 Non-Tiered Server

Jun 30, 2022 Jun 29, 2023

50906746 Endevor Interface for Roscoe

ENDRSC002 Subscrip tion

N/A

216 MSU

Jun 30, 2022 Jun 29, 2023

50906746 Brightside

MSU

BRTENU002 Subscrip tion

N/A 216 MSU Jun 30, 2022 Jun 29, 2023

Utilities Suite for Db2 for z/OS MSU

DBUTMU002 Subscrip tion

216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Scheduler Job Management

SCHBAS002 Subscrip tion

N/A

216 MSU

Jun 30, 2022 Jun 29, 2023

Mainframe DevOps Suite

MDDEVU002 Subscrip tion

216 MSU Jun 30, 2022 Jun 29, 2023

50906746 VM:Manager Suite for Linux on Mainframe

VMMGLX554 Subscrip tion

N/A 3 Engine Jun 30, 2022 Jun 29, 2023

50906746 JCLCheck Workload Automation

JCLBAS002 Subscrip tion

N/A

216 MSU

Jun 30, 2022 Jun 29, 2023

SP_S-10700-0003368_CA Software Licensing & Services Page 12 of 12

Product Name

Product Code License Type

Serial # Authorized

Use

Limitation

Start Date End Date

50906746 CA 2E

Change Management Option

2EPCMH046 Subscrip tion

N/A 1 Designated

CPU

Jun 30, 2022 Jun 29, 2023

50906746 Panvalet Option for

TSO

PVATSO002 Subscrip tion

N/A

216 MSU

Jun 30, 2022 Jun 29, 2023

50906746 DX

Infrastructure Management

DXIMGR990 Subscrip tion

N/A 10 Device Jun 30, 2022 Jun 29, 2023

50906746 DX NetOps DXNOP2990 Subscrip tion

N/A 2 Device Jun 30, 2022 Jun 29, 2023

50906746 CA 2E for iSeries 400

2EPBAS046 Subscrip tion

N/A 1 Designated

CPU

Jun 30, 2022 Jun 29, 2023

50906746 CA 2E 400

Toolkit

2EP4TK046 Subscrip tion

N/A 1 Designated

CPU

Jun 30, 2022 Jun 29, 2023

Recovery Management Suite for Db2 for z/OS MSU

DBRCMU002 Subscrip tion

216 MSU Jun 30, 2022 Jun 29, 2023

50906746 Scheduler Job Management Smart Console Option

SCHSMC002 Subscrip tion

N/A

216 MSU

Jun 30, 2022 Jun 29, 2023

ESP Workload Automation Intelligence

MSU

ESPAAU002 Subscrip

216 MSU Jun 30, 2022 Jun 29, 2023