TM Determination.pdf

SOCIAL SECURITY

MEMORANDUM

Date: August 13, 2012

To: Jacqueline Lessig

Chief of Contracting Office

From: Christopher Mettee

Contracting Officer

Subject: Approval of Time-and-Material (Labor-Hour)-Type Contract -- DETERMINATION

Pursuant to the Federal Acquisition Regulation (FAR) Section 12.207 and Agency Regulation

H2316.601, this determination and findings supports that a Time-and-Materials (Labor-Hours)-type (known herein as ‘T&M-LH’) Task Order is appropriate for the agency’s requirement for server-related support services under the agency’s Information Technology Support Services

Contract (ITSSC) with Computer Sciences Corporation (known herein as ‘CSC’). We made this determination based on the following information:

BACKGROUND

The agency awarded an Indefinite-Delivery, Indefinite Quantity contract, Number SS00-10-

60107, on September 10, 2010, to CSC. CSC’s award was one of four contracts supporting the

ITSSC project. CSC’s ITSSC represents Technical Areas 3, 6, and 9. These Technical Areas focus predominantly on enhancing existing SSA hardware and software infrastructure and server migration. This contract has a base year through September 28, 2011, and has six one-year option periods, for a total of seven years of performance. The estimated value of the contract is

$410 million.

We received Requisition 2378-12-6540, 2378-12-6541, 2378-12-6542, and 2378-12-6543 to provide server-related support and migration in anticipation of the agency’s New Support Center under Technical Area 9. Under Technical Area 9, CSC provides support (systems installation, configuration, updating, administration, maintenance, testing, troubleshooting, etc.) on agency-owned servers based upon z/OS, UNIX, Windows, and WebSphere platforms. The Government

Cost Estimate for these requirements is $2,172,165.53. These requirements called for the following summary of services:

Providing the agency’s Division of Mainframe Systems Software (DMSS) with mainframe support. The Contractor must rewrite in-house Batch Release Processing

System (BRPS) server software to transfer the applications jobs to the agency's new

Integration Production Processing Facility (IPPF) sysplex. The purpose of this work is to complete the agency's Systems Development Life Cycle and make it easily expandable to accommodate additional sysplexes;

Provide the agency’s Division of Mainframe Support Software (DMSS) with vendor software installation and maintenance technical support.

Providing DMSS with technical support to migrate its OPS/MVS mainframe automation software package from a code written rules managed system to a more efficient database driven design;

Installation and maintenance services for the z/OS Mainframe Operating System and all vendor system software products required to sustain the zOS Operating System;

Providing DMSS with resources to install and maintain the multiple mainframe

WebSphere Lifecycle environments, along with an application manager product required to monitor these different WebSphere environments;

Technical support for the installation, configuration, monitoring, and daily administration of UNIX Solaris Software and Sun Oracle Hardware Infrastructure in support of the agency's server Performance Monitoring project; and

Providing the Division of Internet/Intranet Application Services (DIIAS) with support for

Windows Server Administration, including software/hardware maintenance, and interactions.

Installation and maintenance support, including but not limited to:

o Learning and re-writing the in-house BRPS code using Assembler or REXX o Testing the BRPS code o Administering, monitoring, and supporting the BRPS code o Providing guidance and recommendations regarding system configuration o Supporting the end users with the BRPS product o Participating in the continuous improvement process o Providing documentation detailing results of analysis, problems, and recommendations.

Our intent is to award a T&M-LH-type Task Order that continues from September 29, 2012 to

September 28, 2013. The anticipated value of this proposed Task Order is $2,172,165.53.

FINDINGS

1.0 T&M-LH is the Only Suitable Contract Type

The service provided under the proposed Task Order will require work products that the agency can only describe requirements in general terms. These requirements support the migration and development of information technology infrastructure at the New Support

Center (NSC) scheduled for operation in Fiscal Year 2015. In developing these requirements, we face tremendous uncertainties in the extent of work required.

It is a challenge to define the effort required to install WebSphere mainframe within the agency’s production environment because of the Contractor’s reliance on SSA personnel. As priorities in the agency change, SSA personnel staff may not be available to provide necessary verification support necessary to continue installation efforts.

Further, we are still in the planning phase for migrating our server infrastructure to the NSC, and in terms of technical performance, our plan is still fluid. Much of our planning will be iterative and built upon as we adopt new strategies.

SSA’s data center migration will be on a size and complexity never seen previously. The number of servers requiring migration could change dramatically based upon available technology; agency projected data needs; and space/power limitations at the NSC.

Innovative technologies and modernization (such as virtualization and green initiatives) create additional unique challenges because we expect the information technology landscape to change rapidly in terms of server and storage technologies.

As part of the installation and maintenance support, including but not limited to, learning and re-writing the in-house BRPS code using Assembler or REXX, testing the BRPS code, and administering, monitoring, and supporting the BRPS code, we cannot define the number of lines of code, the potential challenges that may come from re-writing the in-house code, or the level of support that may be required to administer/monitor the code.

Due to the complex nature of the system and software being used, we cannot determine the potential number/nature of the problems that may arise in order to provide the Contractor with enough information for them to employ problem analysis and resolution techniques and to analyze the most difficult problems and determine the most effective methods of resolution.

SSA’s data center migration effort will require the Contractor to help SSA evaluate existing vendor software environments in preparation for the IPPF, including designing and developing the IPPF mainframe vendor software environment. However, given the challenges SSA has already come across with this effort, SSA is unable to define the exact customization requires for this software and will be a very iterative SDLC process that will involve unforeseen changes, updates, etc.

SSA is asking the Contractor for support staff to help SSA with server builds, documentation and installation procedures, as necessary, throughout the

Mainframe System programming support efforts. At this time, SSA cannot define the number of builds required, the extent of the documentation, or identify necessary control procedures.

SSA is requesting the Contractor to provide technical expertise on WebSphere, ColdFusion and iPlanet software with configuration issues on the distributed Sun

Solaris environment. However, given the innovative technologies and modernization involved with this effort, there is the potential that this will create additional unique challenges because we expect the information technology landscape to change rapidly in terms of server and storage technologies.

Current SSA direction involves developing, evaluating, modifying, installing, customizing, implementing, and introducing new software changes within the

WSPE. Depending on the challenges SSA comes across during this effort, strategic decisions may be made to change direction; therefore, SSA cannot finitely define a product/deliverable for this effort.

These challenges and uncertainties prevent SSA from further defining its requirement to allow any other type of allowable commercial items contract. Therefore, at the time of placing the order, it is impossible for us to accurately estimate the extent or duration of the work or to anticipate costs with any reasonable degree of confidence.

2.0 Market Research Conducted

On July 12, 2012, the Contracting Officer’s Representative (COR) and the Contracting

Officer (CO) held a meeting with end users to review their requirements in an attempt to make this requirement more fixed price. They identified the following challenges that prevented them for better defining work:

Much of the work described under this task order will be iterative and will build upon itself as decisions and strategies are adopted at the Agency for the data center migration effort. As such, it has been a great challenge to define deliverables, due dates, etc. in order to establish a firm-fixed price Task Order.

Cutting edge modernization (such as virtualization and green initiatives) create additional unique challenges the Agency faces during the data center migration.

The efforts involved with this Task Order are such that effective fixed price deliverables cannot be determined or scheduled. With the constant introduction of software into a highly complex operating environment, our team is monitoring and adjusting the system to meet and maintain a constant high availability operating level for the agency’s customers. The results in fluid requirements.

For this Task Order, the Government controls the workload and/or deliverables and requests that the Contractor provide excellent resources to meet the challenging needs of the organization. We are utilizing Contractor support on these tasks as an integral part of a broader agency-led and -staffed team.

3.0 Structuring to Maximize Firm-Fixed Price

The Government has structured this requirement to maximize the use of firm-fixed price by removing tasks that we could successfully define out of the proposed Task Order. The work required in the proposed Task Order represents only work that we could not accurate estimate the extent of work through finite deliverables or anticipate the costs with any reasonable degree of confidence. Moreover, we will include a ceiling limit of

$2,172,165.53 and establish a 1-year period of performance to limit the agency’s risk.

4.0 Actions Planned to Maximize Firm-Fixed Price on Future Acquisitions

Where applicable, the Government seeks to award fixed-firmed price Task Orders on its contracts under the ITSSC. When the Government receives a Statement of Work (SOW), it is reviewed to determine the best type of Task Order to issue, including FFP. As the

Government proceeds through the initial planning phases of the data center Task Orders, the Government will use the data from current T&M-LH-type work to begin to better define timeframes, levels of support required, more finite deliverables, etc. in order to pursue more FFP Task Orders for this type of work.

5.0 Government Surveillance Strategies

The Government requires weekly and monthly tracking of hours and expenditures across all task orders on the ITSSC. The Government will be tracking the hours the Contractors work on a weekly basis. Each month, the Government Task Manager completes a form stating the hours worked during the reporting period were reasonable. The agency reviews the Contractor’s performance by Performance Assessment Report (PAR) using information submitted by the Task Managers. This strategy should provide reasonable assurance that the Government is using efficient methods and effective cost controls against this Task Order.

DETERMINATION

Based on the above findings, and in accordance with FAR Section 12.207, a T&M-LH-type Task

Order is the only suitable type of contract for this acquisition.

RECOMMENDED:

Christopher Mettee Date

Contracting Officer

CONCUR:

Syreeta Gay Date

Division Director

Division of IT Support Services

DECISION:

Approval of the request to use Time & Materials provisions for Task Order under ITSS Contract

Number SS00-10-60107 is:

Approved:_____________ Disapproved:____________

Jacqueline Lessig, Date

Chief of Contracting Office