FBO JOFOC 10-3-11.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF AGENCY AND CONTRACTING OFFICE:

Agency: Social Security Administration (SSA)

Contracting Office: Office of the Deputy Commissioner for Budget, Finance and Management (DCBFM)

Office of Acquisition and Grants (OAG)

Contracting Officer: ''''''''' '''''''''''''''''''

Division of IT Support Services (DITSS), OAG

Program Office: Office of the Deputy Commissioner for Systems

(DCS)

Office of Disability Systems (ODS)

Contracting Officer’s

Technical Representative

(COTR): ''''''''''''''''''''' ''''''''''''''''''''

ODS

Title: Development of the Electronic Disability (eDib)

System Electronic Folder (EF) Generic Interface

Proposed Contractor: Iron Data Solutions, Inc. (Iron Data)

2. NATURE OF ACTION:

We request approval to negotiate a sole source, firm-fixed-price commercial services

Indefinite Delivery/Indefinite Quantity (IDIQ) contract with Iron Data. The contract will require Iron Data to provide information technology support services enhancing its case processing software. The contract’s term will be six years (a base year and five option years).

3. DESCRIPTION OF SERVICES AND ESTIMATED COST:

Over the last few years, SSA and the Disability Determination Services (DDS) have been transitioning to an electronic disability process (eDib). All of the SSA field offices across the nation now use the Electronic Disability Collect System to provide information to the DDSs.

Using the eDib, the DDSs process applications, claimant information, and medical evidence in electronic form rather than in paper form. Both SSA and the DDSs are now able to work with claims electronically by accessing and retrieving information that is collected, produced, and stored as part of an Electronic Folder (EF). SSA requires enhancements to the Iron Data proprietary disability case processing software.

Iron Data will provide the enhancements to their proprietary case processing software to support use of our EF. These enhancements are needed to allow for the receipt and processing of additional data elements from the EF, changes to the Electronic Forms interface, as well as interfaces with other current and future disability-related systems. Forty-seven DDSs use the Iron Data proprietary case processing software.

We are in the process of transitioning from Iron Data’s proprietary case processing software to a common, SSA developed, Disability Case Processing System (DCPS). We should complete development of the DCPS by 2016. While SSA is developing the DCPS, the DDSs still require enhancements to their legacy systems. The contract with Iron Data will have an option to extend through 2017, in case the DCPS rollout is delayed.

The total estimated cost for a six year period is $104,000,000 with a cost breakdown by

Fiscal Year (FY) as follows:

4. ACQUISITION PLAN STATUS:

The acquisition plan for this procurement is ODS-11-200C6.

5. STATUTORY AUTHORITY:

41 U.S.C. 3304(a)(1) -- Only one responsible source and no other supplies or services will satisfy agency requirements.

Federal Acquisition Regulation (FAR) 6.302-1 -- Iron Data owns the rights and source codes to the software applications required for the interface between SSA and the DDSs; no other vendor has the knowledge and expertise required to implement the numerous EF, user productivity modifications, enhancements, and emergency releases. We have concluded that no other source can satisfy SSA’s needs.

6. CONTRACTOR'S UNIQUE QUALIFICATIONS:

While we are moving forward with the development and transitioning of the DCPS, the existing proprietary software will continue to need enhancements and updates. Iron Data is the sole proprietor of their software application, source code, and data structures. Iron Data is the only company with full access to and knowledge of the source code and data structures within the current legacy software. As Iron Data’s existing code structures and user interfaces are proprietary, these code structures and user interfaces could not be provided by SSA or the DDS to another vendor. Iron Data does not have authorized resellers; therefore, Iron Data is the only vendor that has the ability to provide the support services required to meet SSA’s needs.

Each year, SSA needs to make enhancements to the DDS’ legacy systems to help reduce the disability backlogs and meet deadlines for implementing legislative or court ordered mandates. If Iron Data does not provide these services, SSA will not be able to enhance or update the legacy systems, and the system will remain static until it is replaced by the new

DCPS in 2016. SSA cannot have its disability case processing system remain static for 5 years; the system must continually be enhanced and updated to accommodate both the public’s increasing demand for disability benefits, and legislative or court ordered changes to the disability program.

7. SOLICITATION EFFORTS:

SSA’s notice of intent to solicit and negotiate with only one source for this requirement was synopsized on February 1, 2011 at the Federal Business Opportunity (FedBizOpps) website in accordance with Federal Acquisition Regulations (FAR) subpart 5.2 (see paragraph 12 below). Although past experience indicates that there is no private firm or organization with the necessary experience or access to the data in the commercial marketplace, the notice instructed interested parties to submit a capability statement that the agency will consider.

One vendor provided a generic line-card response to the notice that did not address any of our requirements. For example, the vendor’s response did not demonstrate any programming experience or ability to interface with our mainframe. Moreover, the vendor did not demonstrate any knowledge of the Iron Data proprietary software currently in place in the forty-seven DDSs, or the ability to obtain such knowledge. Nor did the vendor’s response indicate any ability to provide changes or enhancements to Iron Data’s Legacy System.

Expertise in modifying and enhancing Iron Data’s proprietary software code is mandatory to meet the requirements. Based on the Program Office’s technical review of the response, the vendor demonstrated none of the experience and technical capabilities required to meet the agency’s needs.

8. REASONABLENESS OF COST:

The contracting officer will make a price reasonableness determination prior to awarding the new contract.

9. MARKET RESEARCH:

Refer to paragraph 7.

10. OTHER FACTS:

Iron Data has been determined to be a responsible contractor in accordance with FAR subpart

9.104. In addition, past performance of Iron Data’s eDib efforts supports their ability, knowledge, skills, and resources to perform this requirement successfully.

11. LIST OF SOURCES EXPRESSING INTEREST IN THE ACQUISITION:

SSA received only one response from contractor ''''''''''''''''''''' '''''''''''' to the FedBizOpps synopsis.

12. PROCUREMENT HISTORY:

This action is a follow-on procurement to Contract Numbers SS00-06-60143 and SS00-06-

60144, which were both awarded on a sole-source basis. SSA initially awarded these contracts to Versa Management Systems, Inc. (Contract Number SS00-06-60144) and I.

Levy & Associates (Contract Number SS00-06-60143). Iron Data acquired both companies over the last two years. SSA and the DDSs now refer to the Versa proprietary system as Iron

Data – Toronto, and to the I. Levy & Associates proprietary system as Iron Data – St. Louis.

To date, SSA has expended ''''''''''''''''' ''''''''''''''' for Iron Data legacy system software. Since

September 2002, we invested '''''''''''' ''''''''''''''''' in the Iron Data – St. Louis software '''''''' ''''''''''''

''''''''''''''' in the Iron Data – Toronto software. SSA’s investments for Iron Data – St. Louis include ''''''''''''' '''''''''''''''''' in expenditures under Contract Number 0600-02-60072 and '''''''''''''

''''''''''''''''' in expenditures under Contract Number SS00-06-60143. SSA’s investments for Iron

Data – Toronto software include ''''''''' ''''''''''''''' in expenditures under Contract Number 0600-

02-60069 and '''''''''''''' '''''''''''''''' in expenditures under Contract Number SS00-06-60144.

13. ACTION TAKEN TO REMOVE COMPETITION BARRIER:

SSA competitively awarded Contract Number SS00-11-60002 on December 21, 2010 to

Lockheed Martin Corporation. That contract is for the development and implementation of the common DCPS that will provide common functionality and will consistently support the business processes of DDSs nationwide. As the agency deploys the DCPS implementation to all DDSs, the Iron Data legacy systems will be gradually retired.