DATAMANAGEMENTFORPOSTING.pdf

Control No: RCOI-J&A-FY15--28

Version – August 2015

Memorandum for Record – Limiting Competition at or below the Simplified Acquisition Threshold

1. Contracting Activity: 414th CSB, Regional Contracting Office-Italy, Vicenza, Italy

2. Description of Action: The requirement is a sole source acquisition to Data Management Human

Resources SpA to provide annual software maintenance services for the USAG Vicenza/Livorno Italian

Local National Pay System (ILNPS) at 266th Finance. This includes the update of the Oracle 11g Security

Patches with the realignment of two databases that occurs quarterly. The Government projects award on 16 September 2015 for a period of performance of 12 months, 16 September 2015 through 15

September 2016.

Nature: New Requirement Follow-on Requirement

Contract Vehicle: Purchase Order Number: PO has not been accomplished yet

Pricing/Contract Type: Fixed Price Time & Materials/Labor Hours Cost

Reimbursable Hybrid

Funds: Operations & Maintenance, Army (OMA) Other Funds: ________

FY: 15.

Name of Proposed Contractor(s) and Address:

Brand Name Buy: Yes No

3. Description of Services or Supplies:

The software maintenance requirement with Data Management Human Resources SpA supports the present USAG Vicenza/Livorno Italy Finance Office, Italian Local National Pay System which is installed on Windows 2003 server, Oracle database and MS DOS operating system. The required services will provide adequate reporting and record maintenance support for the Italian Finance Office payroll system modules for a period of one (1) year, from 16 September 2015 through 15 September 2016.

4. Authority:

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited:

The current ILNPS has been used by the USAG Vicenza/Livorno, to include US Government Local

Nationals, DECA, MWR, AAFES, and DODDs employees (over a 1,000) since 1 Nov 1994. This system was purchased through Data Management Human Resources SpA by USAREUR Finance Office in 1994 under contract number DAJA37-94-M-0267, with RCO Berlin. The current ILNPS must be compatible with the Italian Government’s Social Security and Tax Offices; as monthly transmissions to these offices from the US Government are required. Only Data Management Human Resources SPA provides the required database format (proprietary custom source code) for these transmissions, as required by the

Italian Government. The ILNPS is required to connect Italian timekeepers with the Italy Finance Office and the Italian Governmental agencies.

Data Management Human Resources SpA has the exclusive and proprietary rights to the initial software and any subsequent alterations based upon their General Conditions of Software Maintenance “Supply

General Conditions Software Maintenance” attached to the contract. Furthermore they have a license agreement “Condizioni Generali di Fornitura Licenza D’Uso Software” (attached to the contract) which states in paragraph 2.1 the following:

a) “The program and documentation remain the exclusive property of Data Management Human

Resources SPA under Data Management Human Resources SPA”

b) “The client may not copy any operational activities of the program…. and may not give sub license to third parties”

c) “The client may not modify the Program….”

Copyright Laws and user agreements in prior contracts prohibit the release of software information to

Other.

Data Management Human Resources SpA is the only vendor that can perform this requirement due to the nature of its patent and proprietary rights. The company has the expertise to modify the Local National pay system attributed to new or modified Italian laws based on their decades of support of the present system. This includes new tables, leaves and training of Local National pay personnel on these complex issues. System maintenance consists of implementing periodic changes in pay, allowances and reporting procedures prescribed by Italian law as well as required program maintenance and remedial problems.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 do not apply due to the $ threshold, apply and will be followed, or do not apply due to an exception at 5.202 ______________________.

Requirement to post justification in accordance with FAR 8.405-6(b)(3), FAR 13.105(c), or FAR

16.505(a)(4)(iii)(A)

Action is NOT a brand name restriction and is under $150K, no posting required

7. Market Research.

Data Management Human Resources SpA has the proprietary rights to the initial software and any subsequent alterations. No other company has the technical expertise to modify, alter or copy any operational activities of the program due to the nature of its proprietary rights to Data Management. Data management personnel is capable to maintain in an effective and efficient way the software system. The program and documentation remain the exclusive property of Data Management Human Resources SpA.

Other possible vendors would be unable to complete this task because the program and documentation remain exclusive property of Data Management Human Resources SpA which has the exclusive and proprietary rights to the software process tools utilized by the Italian Payroll in Finance Office.

8. Procurement. Other Facts:

Award of a contract to other than Data Management Human Resources SpA would adversely impact the

Government’s ability to provide adequate reporting to the Italian Government and record maintenance support to the Local National pay system. Failure to have a compatible system in place with the Italian

Government could result in a complete disruption of the service and violation of agreements between the two Governments.

In addition, having the software altered or the maintenance performance by a different vendor violates the terms of their General Conditions of Software Maintenance from Data Management Human Resources

SpA. Therefore, failing to procure a new license and new software maintenance agreement from Data

Management Human Resources SpA would adversely impact the Government’s ability to provide reporting and record maintenance and potentially create the need to procure new software if the

Government has impermissible altered Data Management Human Resources SpA’s property.

Data Management Human Resources SpA is the only ones that possesses the technical expertise to execute this task and maintain the integrity of the equipment.

9. Technical/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.

10. Contracting Officer Certification/Approval:

As Contracting Officer, I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon comparison with market research of prices available for the requirements.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.