TeamMate Plus JOFOC FINAL_Redacted.pdf

JOFOC-2020-014

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA)

NASA SHARED SERVICES CENTER

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

For 80NSSC20Q0383 Authority: 41 U.S.C. 1901, as implemented by FAR 13.501(a)

1. Federal Acquisition Regulation (FAR) 6.303-1(b)(1) – Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition.”

This document is a justification for other than full and open competition prepared by

National Aeronautics and Space Administration (NASA), and the contracting activity, NASA Shared Services Center (NSSC) Enterprise License Management Team (ELMT).

2. FAR 6.303-2(b)(2) – The nature and/or description of the action being approved:

The NASA Shared Service Center (NSSC) anticipates awarding a sole source firm–fixed price purchase order to Wolters Kluwer Financial Services, Inc. for TeamMate Suite software services and maintenance. This justification provides the rationale for contracting by other than full and open competition to award a sole-source purchase order Wolters Kluwer Financial Services Inc. The period of performance will consist of a one year base period and three one year option periods. If all options are exercised, then the final date of performance would be June 30, 2024.

Base Period July 1, 2020 – June 30, 2021 Option Period 1 July 1, 2021 – June 30, 2022 Option Period 2 July 1, 2022 – June 30, 2023 Option Period 3 July 1, 2023 – June 30, 2024

TeamMate Suite ("TeamMate") is a Windows-based electronic audit management system that consists of the following modules: TeamRisk, TeamSchedule, TeamMate- EWP, TeamMate TEC and TeamCentral. Further it encompasses the TeamMate+ Audit and Controls Suites, as well as TeamMate Analytics.

3. FAR 6.303-2(b)(3) – A description of the supplies or services required, to meet the Agency’s needs (including the estimated value):

The TeamMate Suite package is for 100 users and includes the aforementioned modules, a number of formal training classes, telephone desk support and any and all subsequent software maintenance updates/upgrades or patches. The contract has been renewed annually via one-year purchase orders since the inception of the requirement. The most recent purchase order, 80NSSC19P1256, was awarded by the NSSC Simplified Acquisition Team with a period of performance July 1, 2019 through June 30, 2020. Wolters Kluwer Financial

Services Inc. is recommended because TeamMate licenses are proprietary software to Wolters Kluwer Financial Services Inc., who exclusively supports the application.

This requirement encompasses Audit Management Software for the NASA Office of Inspector General (OIG) which includes installation, consulting, configuration, and training services to upgrade from the TeamMate AM version to the TeamMate Plus version.

TeamMate licenses are proprietary software to Wolters Kluwer Financial Services Inc, who exclusively support the application. All data entered into TeamMate by NASA OIG is owned by NASA OIG. The Period of Performance start date is July 1, 2020.

The total independent government estimate for this requirement is for the base year and all three option years.

4. FAR 6.303-2(b)(4) – An identification of the statutory authority permitting other than full and open competition:

The statutory authority permitting other than full and open competition for acquisitions using the procedures in FAR 13.5 is 41 U.S.C 1901 applies to this procurement. This justification is based on Wolters Kluwer Financial Services Inc. being the only responsible source and no other supplies or services will satisfy agency requirements. This JOFOC complies with the special documentation requirements of FAR 13.501(a)(1)(ii). There are no other vendors who have authority to distribute TeamMate licenses as the software is proprietary to Wolters Kluwer Financial Services Inc., who exclusively supports the application.

5. FAR 6.303-2(b)(5) – A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

The rationale supporting the use of 41 U.S.C. 3304(a)(1) is only one responsible source and no other supplies or services will satisfy agency requirements as described below. 41 U.S.C.

3304(a)(1) –. The property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency.

In the 1996/1997 timeframe, the Office of Audits established a requirement to automate the audit working paper documentation process. The requirement was noted in a need to improve productivity by standardizing the working paper documentation process, simplifying working paper review, and in general, improving the logic flow and legibility of the working papers.

After an exhaustive review in 1997/1998, the Office of Audits selected the Price Waterhouse Coopers (PWC) (now Wolters Kluwer Financial Services Inc.) electronic working paper package (TeamMate) from a list of seven potential candidates. While the competing packages all had certain advantages, the conclusion was reached, that TeamMate was the best solution. Teammate interfaced the standard Microsoft Office Package for the actual creation of the work papers – Microsoft Office (MS Office) was, and continues to be the standard software suite used by the Office of Inspector General (OIG) and the NASA OIG had a substantial investment in training there. More importantly, the transition to the electronic form of working papers would be relatively easy.

TeamMate is designed to improve audit department efficiency, consistency in the quality of audit work, and visibility across the entire audit lifecycle. For example, TeamMate allows for advanced Microsoft Office integration, including point to point hyperlinking within the documentation, and the ability to migrate and report on completed and closed out audits using the migration wizard from the current TeamMate version to the TeamMate+ upgrade.

Point to point hyperlinking is a value-added feature that other audit software does not have.

This feature allows for easier and more efficient ability to determine and jump to exactly where support lies across various types of documentation that in turn supports the audit report. This feature is quite helpful during the independent reference review process while easing the burden of the reviewer and allows for a much more efficient review. This feature can also aid the speed in which time sensitive audit reports are issued.

Additionally, no other products allow for migrating historical data from older TeamMate versions into the newest web-based TeamMate+ version. The migration of completed projects into the TeamMate+ upgrade allows for compliance with the six year file and data retention requirement, a critical reason for continuing in the TeamMate ecosystem.

TeamMate also includes solutions for risk assessments, audit plan management, audit execution, management review, audit report generation, risk and issue trend analysis, audit committee reporting, and storage. By providing a seamless, web-based strategy for managing audits, TeamMate's audit software eliminates the barriers associated with paper-filled binders and disconnected electronic files, driving efficiencies into all facets of the internal audit workflow. TeamMate further includes several market differentiators, including multidimensional risk assessments, offline capability, a PDF/Office integration from a web-based system. These items are designed to increase the depth of the information gathered from risk assessment and improve the audit team’s productivity. Other market differentiators include:

Resource and scheduling management – After deciding which audits to include, budgeting is completed from a capacity perspective before moving into a scheduling phase.

Controls tests – Controls are included in audits for testing, either from the risk assessment or added directly to the audit. Testing is supported by documentation created by the auditor and/or gathered from the auditee.

Audit reporting – Audit reports can be generated from the audit to include all the key information from the audit. The report also includes workflow options to publish the report to management from the application.

Remediation management – Issue are tracked through to remediation within a single, consolidated area in TeamMate. Action plan owners can access the items they own and provide both status updates and related documentation.

TeamMate solutions also include Controls Management and Data Analytics. Together, this suite of solutions provides auditors with the confidence needed to manage all aspects of risk identification and assessment, electronic working paper creation and management, controls framework management, and data analysis. This, along with all the unique feature discussed above, especially the data retention requirement, demonstrates the criticality of upgrading to TeamMate+ and remaining the current ecosystem.

TeamMate solutions also include Controls Management and Data Analytics. Together, this ecosystem of solutions provides auditors with the confidence needed to manage all aspects of risk identification and assessment, electronic working paper creation and management, controls framework management, and data analysis.

This year NASA OIG plans to upgrade from the TeamMate AM version to the TeamMate Plus version, which will require additional one-time costs to provide installation, consulting, configuration, and training services for the related upgrade. While this will require an additional investment of time and money by NASA OIG, TeamMate is already integrated into our IT systems and system processes, staff already are familiar with the TeamMate systems, and our existing data will be transferred by the company to the upgraded version. It is expected to take approximately six months to fully upgrade to TeamMate Plus and the cost for the migration package is , with an additional in potential vendor travel to train staff on the upgraded system.

NASA OIG has already heavily invested in TeamMate and it is the backbone of the program office’s work. NASA OIG has used TeamMate for over 20 years. While the NASA OIG are migrating to an upgraded version that will require some additional training they have invested more than 20 years of training and use on the TeamMate software product. Over the decades the NASA OIG has conducted regular TeamMate trainings at all NASA centers in which they operate and have invested resources to attend annual TeamMate trainings. The NASA OIG has also developed internal processes around our use of TeamMate and it is the product around which OIG auditor’s document and analyze their work on a daily basis. To switch to a new vendor would cause undue burden on the government as the NASA OIG would need to start from scratch training the entire agency on a completely new software, as opposed to training staff on an upgraded version of current software. The NASA OIG anticipates that productivity would decrease or even cease for a period of time if they had to implement a new software entirely and re-train staff on a new system as well as develop and implement new internal processes to match a new software universe.

Beyond training, the NASA OIG would need to implement extensive updates to their internal processes as documented in their Audit Policy Manual if a vendor other than TeamMate was used. Currently, the NASA OIG’s Audit Policy Manual “page 201” is built largely around how to adhere to their audit policies and procedures using TeamMate software. The procurement of a new vendor would require a complete re-write of our Audit Policy Manual and changes to their audit practices. As a result, implementing a completely new software package would unquestionably result in delays in audit work and overall Office of Audits production.

Additionally, the NASA OIG performs regular peer reviews of work performed by other Offices of Inspector General, and the vast majority of these offices also utilize TeamMate.

Switching to a different work paper software would make these mandated reviews more time consuming and very challenging to execute in the required timeframe. Also, not only would changing work paper software be a gargantuan undertaking, there is a risk to training the entire agency on a completely new system, while keeping the mandatory pace required in executing our mission as an Office of Inspector General, and could even result in higher costs. It would be difficult to measure these impacts.

Lastly, NASA’s Information Technology team hosts the TeamMate software product on NASA OIG servers for several other Inspector General offices in the federal government.

Beyond the NASA OIG Audit team, NASA’s IT team has invested years of work on learning and maintaining TeamMate software on our NASA servers, not only for NASA OIG work but for the work of other federal agencies. This team conducts regular trainings and back-end IT work for the TeamMate ecosystem. To switch to another vendor would require this group to maintain two different audit software products on the NASA server and require them to be trained and knowledgeable about two separate systems.

6. FAR 6.303-2(b)(6) – A description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies:

Wolters Kluwer Financial Services Inc. is the developer and the sole source provider for all TeamMate software and specialized services. A notice of intent to issue a sole source purchase order to Wolters Kluwer Financial Services Inc. was published to the Government Point of Entry (GPE) website (beta.sam.gov) in accordance with FAR Subpart 5.2 on April 7, 2020 with a response date of April 10, 2020. This posting informed any/all potential sources of NASA’s intent to award this sole-source contract to Wolters Kluwer Financial Services

Inc. The posting yielded no responses from industry. The results of this synopsis are summarized in Section 10 below.

7. FAR 6.303-2(b)(7) – A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contractor shall be required to submit a price proposal to be evaluated and negotiated by the Government. Prior to execution of the contractual instrument, a price analysis will be performed. The price analysis will ensure that the final agreed-to price for the contract action is fair and reasonable.

Before making an award, the Contracting Officer will determine that the proposed price is fair and reasonable based on several of the techniques identified in Federal Acquisition Regulation (FAR) Subpart 13.106-3 – Award and Documentation. This procurement is for a commercial item. Thus, the price can be determined fair and reasonable based on a comparison of the established market price and historical pricing.

As NASA has historical contract information from previous awards with Wolters Kluwer Financial Services Inc. for TeamMate Annual License Renewals (80NSSC19P1256), there are no anticipated issues that would circumvent a fair and reasonableness price determination. The Contracting Officer will determine price reasonableness during the proposal evaluation process prior to contract award, based on historical pricing/IGCE and commercial pricing, if available.

8. FAR 6.303-2(b)(8) – Description of the market research conducted, and the results, or a statement of the reasons a market research was not conducted:

The NSSC Enterprise License Management Team (ELMT) conducted market research to determine whether there were any other sources for these services. First, the ELMT reviewed the mandatory source lists in accordance to FAR 8.002 and 8.003. Due to not being able to satisfy the requirement from the mandatory sources listed in FAR 8.002 and 8,003, (ELMT) additionally reviewed other non-mandatory sources. The (ELMT) conducted a review on SEWP and GSA Advantage which yielded results for Wolter Kluwer Financial Services Inc.;

however through a more thorough review the ELMT ascertained that the requisite software maintenance and support was not available on any GSA Federal Supply Schedule (FSS) contracts. A review of the NASA SEWP multi-award Government-Wide Acquisition Contract (GWAC) was conducted as well and the ELMT ascertained that no additional sources were available for the TeamMates software maintenance and support. Wolters Kluwer is a large business with 4 primary business units. TeamMate currently falls under tax and accounting and is sole source only. TeamMate software is not presently on the GSA, SEWP or any other pricing schedule. In addition to our findings, on 4/2/2020, Wolters Kluwer Financial Services Inc. provided a sole source letter stating they owned the sole and exclusive right to license and service the TeamMate Suite. Based off the above market research, the NSSC Procurement Operations Branch has made the decision to issue a Sole Source to Wolters Kluwer Financial Services Inc. via open market.

9. FAR 6.303-2(b)(9) – Any other facts supporting the use of other than full and open competition:

Not applicable.

10. FAR 6.303-2(b)(10) – A listing of the sources, if any, that expressed an interest in writing in the acquisition:

Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique of highly specialized or an exclusive licensing agreement. A notice of NASA’s intent to award this sole-source action was synopsized on the GPE website (beta.sam.gov) per FAR Subpart 5.2 (See Section 6 above). There were no responses received following the posting of the notice of intent to sole source.

11. FAR 6.303-2(b)(11) – A statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

The Agency will continue to examine the market in the future for alternative solutions or new sources before executing any subsequent acquisitions for the same requirements. Due to the nature of the expressed requirement, there are no known actions which the Agency may take to give consideration to other software publishers for the requirements described herein. Prior to the award of future contracts, market research will be completed to determine if potential sources have emerged that will allow for competition.

JOFOC-2020-009

Version: Base

JOFOC Signature Page for TeamMate Software License Renewal

I certify that the facts presented in this justification are accurate and complete.

Laurence Hawkins, DateTechnical Representative

I hereby certify that the above justification is complete and accurate to the best of my knowledge and belief.

Joseph Tynes, Date Contracting Officer

Lead Contracting Officer Approval

Justin S. Fraser, Date Lead Contracting Officer, ELMT NASA Shared Services Center

Digitally signed by LAURENCE

HAWKINS

Date: 2020.05.28 11:46:03 -04'00'

Joseph Tynes Digitally signed by Joseph Tynes Date: 2020.06.18 08:57:15 -05'00'

Justin Fraser Digitally signed by Justin Fraser Date: 2020.06.18 09:39:49 -05'00'