SSJ_RSMeans (below SAT)_REDACTED.pdf

FOR OFFICIAL USE ONLY

Use of a Single Source Below the Simplified Acquisition Threshold (SAT)

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Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Contracting Activity: 502 Contracting Squadron / JBKAA

Project/Program Name: RSMeans Online Complete

Purchase Request / Local ID Number: F2M3CC1133AW01

Estimated Contract Cost (including Options): $248,815.00

The anticipated acquisition will be a follow-on sole-source contract between the Government and R.S. Means Company LLC supplying the RSMeans software for a one-year base period a one-year option period. Gordian Group, LLC., is the sole source distributor of the following products:

• RSMeans Data Online (formerly RSMeans Online)

• RSMeans data CostWorks CD, network version (formerly RSMeans CostWorks-CD)

• RSMeans data API for data integration with 3rd party software

• Engineer-led training on all RSMeans products The software is currently in use by the 802 Civil Engineering Group (802 CEG). RSMeans is a construction cost estimating software application that allows users to prepare the Independent Government Cost Estimate (IGCE), which is required by the Federal Acquisition Regulation (FAR). This application includes a list of appropriate items used to calculate the labor costs, material costs, and all the appropriate state and county allowable coefficients and applicable profit markups. RSMeans software is used for all types of construction, repair, maintenance , environmental and communication projects. Currently the Engineers have no other way to prepare independent Government cost estimates (IGCEs) for projects because the Authority to Operate (ATO) for the stand-alone version expired on 11 April 2021. The 802 CEG requires access to this software at the soonest so there is no hold up on over $2.5 billion dollars' worth of projects pending Joint Base San Antonio wide (JBSA). Given the amount of data currently in use under RSMeans online software, the loss of this data would severely set back CE and the Government for over 500 projects estimated at $2.5 billion at JBSA.

802 CEG has requested a 5-year contract, which was approved by 502 Communication Squadron. However, 502 Contracting Squadron has concurred with Gordian Group that the RSMeans software is currently being reviewed by the Government for FedRAMP (Federal Risk and Authorization management Program) approval, which provides and promotes secure services and standardized approaches to mitigate risk for cloud technologies and federal agencies. This means that the RSMeans product approved by the Government may change to meet Government standards for the FedRAMP program. Therefore, it was determined that this current requirement shall not exceed 2-years in order to mitigate duplication of effort, while mitigating the loss of data for the 802 CEG.

Gordian Group, LLC., acquired RSMeans Company, LLC., in 2014. According the 802 CEG, RSMeans software is the industry standard for cost estimating. Gordian Group, RSMeans, is the sole distributor of the following products and services: RSMeans Data Online (formerly RSMeans Online), RSMeans data CostWorks CD, network version (formerly RSMeans CostWorks-CD), RSMeans data API for date integration with 3rd party software, and Engineer-led training on all RSMeans products. 802 Civil Engineering Group (802 CEG) requires the renewal online software to continue with the independent government estimates being worked in 802 CEG.

Due to circumstances beyond 802 CEG's control, the program normally utilized by project managers (E4 Clicks) was removed from CEG systems since it was not approved for use on the Air Force network, which has left very limited choices for developing cost estimates for acquisition projects. The stop-gap solution was to utilize PACES (a parametric cost estimator) to create the estimates. In order to obtain a license for PACES, an employee needs to take and pass the WENG 400 class. This class does not

Section A: General Contract Information

Section B: Description of the Supplies/Services Required

Section C: Rationale for Soliciting from a Single Source or Brand Name

FOR OFFICIAL USE ONLY 4 Jan 2021 Page 2 of 3 teach the employee to use PACES, it merely uses it as a supplementary example on how to do “cost estimation”, but still required to take. Per 802 CEG, the very nature of PACES, as a MILCON parametric cost estimator, means that the actual project could vary between 20% and 30% of the estimate (+50% when applied to renovation projects). Additionally, many employees have had to repeatedly take the course to pass it in order to use it.

In lieu of the PACES program that was designed to meet another need (MILCON estimates), 802 CEG has used the estimated software that is the industry standard and used across Joint Base San Antonio (JBSA): RSMeans Online Complete. This cloud based solution allows six concurrent users to make and can share estimates with a maximum 60 user database. It is completely online and does not require anything to be downloaded to the individual user computers (user can export excel spreadsheets and PDFs from the online estimator), and has been approved by the 502 Communication Squadron for use.

RSMeans is the price book of choice for not only the Air Force, but the construction industry as a whole. Specific benefits to the Air Force center around the fact that the RSMeans price books and online tools that we use are set up in the CSI MasterFormat, which mirrors the way the customer's Unified Facilities Guide Specifications (UFGS) are set up. In addition, other tools that are available, such as e4Clicks, are not approved to be used on the Air Force network. Since the RSMeans cost estimating tool can be accessed online, it does not present any vulnerabilities to the Air Force network. At this time, the effort to switch to any other tool would take a herculean effort, given the amount of data that 802 CEG has built into the system. The customer would have to start from scratch on a $2.5 billion dollar program that encompasses more than 500 projects over 11 geographically separated locations at JBSA.

The customer assesses that the average estimate was developed in four weeks (40 hrs x 4 weeks = 160 hrs), it would mean that there could be an approximate loss of 80,000 man hours. Multiply this by an average hourly rate of $45/hr for our Project Managers, this would mean a loss of $3.6M to the government as a result of duplication of effort, let alone the incidental losses for forcing our manpower to redo work that is already readily available via a useful tool that is used widely across the government/industry.

A Notice of Intent was posted on SAM.gov on 20 May 2021 specifying the Government's intent to award a sole-source purchase to RSMeans Company, LLC for the purchase of RSMeans Online Complete. No responses were received as a result of the notice.

Additionally, a letter was provided by RSMeans, acquired by Gordian Group LLC in 2014, is the sole source for the RSMeans software.

It is the Government's intent to maximize competition. However, in this situation, based on the fact that the customer is currently using RSMeans for all CE projects across JBSA for 500+ projects totaling over $2.5 billion, it is not in the Government's best interest to procure an alternate solution due to the down time as a result of having to re-enter data currently in use in the RSMeans software and the duplication of effort that could result in a $3.6M loss for the Government. To mitigate the risk to existing projects being worked in RSMeans, and to mitigate risk in loss of time and any associated costs, it is determined that RSMeans is the only solution for this current requirement. In addition, because Gordian Group is in the process of getting RSMeans on the FedRAMP Authorization list, the Government will have new strategies for future purchases of similar requirements. The Government will continue to inquire with the market for possible solutions that will meet the customer's needs.

Section D: Efforts to Obtain Competition

Section E: Steps to Preclude Future Single Source or Brand Name Awards

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I have determined, in accordance with FAR 13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

Date

15-Jun-2021

Typed Name and Rank/Grade of Contracting Officer

HEATHER A. SORENSEN, GS-13,

Signature of Contracting Officer Digitally signed by

SORENSEN.HEATHER.A.1396143034

Date: 2021.06.16 09:02:20 -05'00'

Section F: Contracting Officer's Determination