V_13 LSJ.pdf

DEPARTMENT OF THE TREASURY

LIMITED-SOURCES JUSTIFICATION

This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 5/18)

Prescribed by Treasury: DTAP 1008.405-6

Tracking No.

1. Identification of the agency and the contracting activity:

Requiring Activity: IRS Strategy and Planning, Strategic Supplier Management Division

Contracting Activity: IRS Procurement, Office of Information Technology Acquisition, Enterprise System Support Branch

2.a Nature and/or description of the action being approved:

This is an urgent and compelling requirement to be met via modification to contract 2032H5-20-

F-00082 with Dell Federal Systems L.P. The contract provides Microsoft products under a

Microsoft Enterprise License Agreement. This requirement adds additional quantities of the same items that are provided under the original order. The total value of this additional effort is

$252,980. The following is a list of the items, quantities and total price.

Description Part No. Quantity Total Price

O365GCCE3 ShrdSvr ALNG SubsVL MVL PerUsr

AAA-11894

2,000

$203,980

Azure Monetary Commit (Public)

AAA-35418

$49,000

The above licenses will be provided for the period of 5/1/20 through 11/30/20.

2.b Name of the vendor: Dell Federal Systems L.P.

2.c Requisition No.: 5000093529

2.d Bridge contract: ☐ Yes ☒ No 2.e Brand name: ☒Yes ☐ No

3.a A description of the supplies or services required to meet the agency’s needs:

1) 2,000 additional Microsoft Office 365 G2 subscriptions, part number AAA-11894, to support additional IRS users above the previously licensed 80,000.

2) Microsoft ExpressRoute Public connectivity, part number AAA-35418, to support connections to the Microsoft Office 365 FedRAMP Moderate cloud. ExpressRoute is the charge for internal bandwidth (e.g. within the Office365 cloud) to support bidirectional data traffic beyond provisioned network connectivity between IRS datacenters and the

Microsoft cloud.

3.b Includes IT: ☒ Yes ☐ No NAICS: 511210 PSC: 7030

3.c IGCE/Estimated dollar value: Total Estimated Value: $252,980 for the period of 5/1/20 through 11/30/20.

4.a Identification of the authority being used (Check the appropriate box that applies).

☒ FAR 8.405-6(a)(1)(i)(A) – An urgent and compelling need exists, and following the procedures would result in unacceptable delays.

☐ FAR 8.405-6(a)(1)(i)(B) – 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 or highly specialized.

☐ FAR 8.405-6(a)(1)(i)(C) – In the interest of economy and efficiency, the new work is a

This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401) logical follow-on to an original Federal Supply Schedule order or BPA provided that the original order or BPA was placed in accordance with FSS procedures in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

☐ FAR 8.405-6(b) – Items peculiar to one manufacturer.

4.b Supporting Rationale:

IRS purchased over 80,000 Microsoft Office 365 user subscriptions under order 2032H5-20-F-

00082, Dell Federal Systems L.P. IRS now requires an additional 2,000 Microsoft Office 365 user subscriptions to license the entire, current IRS user population. IRS has until June 30, 2020 to migrate all users to Office 365, or the Microsoft Office suite of applications will become unusable (relative to IRS requirements) for some IRS users. These additional Office 365 subscriptions are urgently required to avoid any disruption in Microsoft Office functionality for

IRS users.

Use of Microsoft Office 365 is enabled by Tenants, e.g. authorization for use as tracked and validated at no more than 30 day intervals via electronic mechanisms. IRS has activated 79,153 users within the Office 365 G3 tenant. As of Monday, 6/1/2020, 2,744 users are unactivated. If the additional licenses are not purchased, a maximum of 847 additional users can be activated and 1,897 users will lose access to all Microsoft Office functions, including email, Skype conferencing, Sharepoint document functions, and core Office applications not later than June

30.

IRS purchased cloud services in the Microsoft public cloud (Azure) under order 2032H5-20-F-

00082, Dell Federal Systems L.P. IRS now requires a private connection from the IRS network to the Microsoft public cloud (Azure) in order to securely access those cloud services. The significant increase in telework due to COVID19 has compelled IRS to accelerate the adoption of cloud services. The Azure Monetary Commit (Public) is urgently required in order for IRS to establish that connection to the Microsoft public cloud (Azure).

If the ExpressRoute data use capacity is not added, IRS will be unable to commence with testing or further work towards implementation of Office 365 online services. This includes implementation of, and transistion to, Exchange Online. The transition has been directed by

Department of the Treasury under the general requirements laid forth by the Federal CTO office.

The ExpressRoute data capacity is a REQUIRED charge for any and all Office 365 cloud data access (similar to a cell phone data charge, for example). The modification provides the line item necessary for Dell to invoice the Azure Public GCC connection charges. The line item was inadvertently omitted from the original award.

5. A determination by the ordering activity Contracting Officer that the order or BPA represents the best value consistent with FAR 8.404(d):

Per the FAR 8.404(d), “GSA has already determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable.”

However, the Contracting Officer will perform a price evaluation as required by 8.405-2 using the evaluation criteria provided to the schedule contractors. The IRS will seek the best value to the

This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Government by soliciting multiple quotes on GSA eBuy using the Information Technology (IT) GSA

Schedule 70 in a competitive environment. In addition, the IRS will seek additional discounts before placing an order (see FAR 8.405-4).

6. A description of the market research conducted among schedule holders and the results or a statement why market research was not conducted:

The contract to be modified was competitively awarded to the lowest cost vendor. This modification adds additional seats at the same price and the ExpressRoute data at the mandatory

Microsoft rate. The increase represents an increase to the contract value of approximately 0.3%

7.a Any other facts supporting this justification:

Microsoft products are the proprietary intellectual property of Microsoft Corporation and use is on a permissive license basis only. Therefore, only Microsoft or Microsoft Authorized Government resellers can meet the Government requirements for continued licensure.

7.b Attachments: ☒ IGCE, Acquisition Plan,

8. A statement of the actions, if any, the Requiring Activity and Contracting Activity may take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for the supplies and services is made:

There are no logical actions the Government could take to change these needs other than reducing the IRS workforce or determining to not migrate to cloud based capabilities.

This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 5/18)

Prescribed by Treasury: DTAP 1008.405-6

Tracking No.

9. Certifications and Approvals:

9.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided (e.g., the Government’s minimum needs or requirements, or other rationale for the limited sources) and which form the basis for this justification for an exception to fair opportunity, are accurate and complete to the best of my knowledge and belief.

Name: Christopher Roundfield Date: 6/04/2020

Signature:

9.b Contracting Officer Certification and Approval. I hereby determine the circumstances of this acquisition support the justification to acquire these supplies or services on a limited source basis. I also certify this limited-sources justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement on a limited-source basis.

Name: Date:

Signature:

10. Additional Reviews and Approvals (As applicable):

10.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to the Associate Bureau CIO(s).)

Name: Date:

Signature:

10.b Advocate for Competition (if over $700,000, but not exceeding $13.5 million)

(Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the ordering activity’s Advocate for competition, I hereby approve this limited-sources justification.

Name: Date:

Signature:

10.c Head of the Procuring Activity or Authorized Designee (if over $13.5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief.

Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this limited-sources justification.

Name: Date:

Joseph Cloft 6/09/2020

This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Signature:

10.d Treasury Chief Information Officer (for IT requirements that are over $68 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

10.e Senior Procurement Executive (if over $68 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, I hereby approve this limited-sources justification.