A02_IBM_E980_JEFO-signed_redactedv2.pdf

Supply/Service: IBM E980 NES Upgrades NVME and Fiber Channel Adapters Purchase Est Dollar Value: $440,000.00

Department of the Army Justification for Exception to Fair Opportunity - IBM Under Multiple Award Indefinite Delivery Contracts

1. Contracting Activity: U.S. Army Contracting Command – Rock Island (ACC-RI), Rock Island Arsenal, Rock Island, IL 61299-8000.

2. Description of Action: This action is for an International Business Machines (IBM) E980 Network Environmental System (NES) upgrade, Non-Volatile Memory Express (NVME) Solid State Drives (SSDs), and Fiber Channel Adapters purchase. The Product Manager (PdM) Global Combat Support System-Army (GCSS-A) requests a firm fixed price delivery order under Product Leader Computer Hardware, Enterprise Software and Solutions (PL CHESS) Information Technology Enterprise Solutions-3 Hardware (ITES-3H). ACC-RI anticipates award for March/April 2019, and fiscal year 2019 OPA funds will be used. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

Procuring IBM E980 Upgrades, NVME SSDs, and 32 Gb Fiber Channel Adapters is critical to the Government’s requirement to provide acceptable performance of the GCSS-A system supporting Soldier readiness. GCSS-A user base continues to grow and is placing performance constraints on the system. Commanders and other users in the field use GCSS- A to assess troop readiness and take required corrective measures to improve performance.

GCSS-A is a near real time activity and is used to ensure that troops have all required materials to accomplish their mission. Loss of Input/Output (I/O) performance results in degraded system performance and prevents GCSS-A users from accessing the most up to date readiness data to inform real-time command decisions on the battlefield.

3. Description of Supplies/Services: 11 IBM Servers require hardware upgrades as follows:

Est Dollar Value: $440,000.00

4. Authority Cited: Federal Acquisition Regulation (FAR) 16.505(b)(2)(i)(B) and FAR 16.505(a)(4). The supplies or services to be ordered are unique by brand name. However, more than one awardee under CHESS ITES-3H is capable of providing the supplies required at the level of quality required.

5. Reason for Authority Cited: Brand Name only justification is required as the upgrades being purchase are for IBM servers. Only IBM manufactured items are preferred in replacement/upgrade of an IBM system. If any other manufacturer’s product is installed the system’s warranty would be voided, incompatible with current IBM configuration, negatively affect network connectivity, and require additional procurement of separate service contract.

Alternative of re-procuring new servers is not economically feasible requiring substantial re-procurement costs.

6. Market Research: GCSS-A conducted market research during December/January 2018.

Open-market sources were originally researched, which resulted in IBM being the only provider for the upgrades for NVME SSDs and 32 Gb fiber channel adapters. They are available from IBM direct and IBM Authorized Business Partners / Resellers. Market research supported that only IBM and no other manufacturers’ items are capable or substitutable to integrate into the existing infrastructure. Market research also concluded that this brand-name requirement will be fulfilled by soliciting among the 17 vendors on CHESS ITES-3H, which is a mandatory commercial IT hardware source for Army entities per Army Federal Acquisition Regulation Supplement 5139.101-90(a)(1).

7. Actions to Increase Competition: GCSS-A is continually monitoring the marketplace and assessing products in search of better hardware/software and overall IT solutions to improve and enhance its systems. At this time, any future procurements of equipment would need to be IBM brand-name as well. Using IBM products will ensure networkability of new components and maintain system integrity throughout the server lifecycle. Additionally, extra equipment needed to interface and a new team of Intel system experts would not be required.

GCSS-A will remain vigilant in monitoring the ever-changing world of IT solutions in case an alternative leads to more competition.

8. Other Facts: Procurement History: All GCSS-A IBM AIX (IBM’s enterprise-class Unix operating system) equipment (including servers) have been previously purchased/managed by the Logistics Systems Integrator, Northrop Grumman prior to June 2017. Acquisition of this equipment has now transitioned to GCSS-A. 8 IBM E880 servers were procured in June 2017

– (W52P1J-16-D-0008/0003) and 3 in June 2018 (W52P1J-16-D-0008/0005). The eight (8) IBM E880 servers purchased were upgraded to E980s in December 2018. Additional upgrade/adapters is essential and I/O performance is critical to overall system performance.

Est Dollar Value: $440,000.00

9. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Date: ____________________

10. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Date: ____________________

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be made by using price analysis and the Independent Government Cost Estimate. Prices listed in CHESS ITES-3H vendors’ catalogs have been determined to be fair and reasonable at the base contract level. As a part of this basis, certified cost or pricing data is not required in accordance with FAR 15.403-1(a) because the supplies being acquired are considered commercial.

Date: ____________________ _____________________________

NATHAN B. BOWERS

Contracting Officer, CCRC-QH

12. Contracting Officer Certification: Based on the foregoing, I approve this justification to limit competition subject to availability of funds, and provided that the supplies herein described have otherwise been authorized for acquisition. I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date: ____________________ _____________________________

NATHAN B. BOWERS

Contracting Officer, CCRC-QH

2019 04 08

2019 04 08

15MAR2019

15MAR2019 BOWERS.NATHA

N.B.1298739573

Digitally signed by

BOWERS.NATHAN.B.129873957

Date: 2019.03.15 15:09:34 -05'00'

BOWERS.NATHA

N.B.1298739573

Digitally signed by

BOWERS.NATHAN.B.129873957

Date: 2019.03.15 15:09:04 -05'00'

Est Dollar Value: $440,000.00

Approval

Based on the foregoing justification, I hereby approve the procurement of IBM E 80 servers and ancillary components using an exception to fair opportunity pursuant to the authority of FAR 16.505(b)(2)(i)(B) and FAR 16.505(a)(4), subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Date: ____________________ ________________________________

NATHAN B. BOWERS

Contracting Officer, CCRC-QH

10APR2019 BOWERS.NATHA

N.B.1298739573

Digitally signed by

BOWERS.NATHAN.B.129873957

Date: 2019.04.10 10:03:34 -05'00'