LSJ_Redacted.pdf

Control _

Version – February 2017

Memorandum for Record – Limiting Competition at or below the Simplified

Acquisition Threshold

1. Contracting Activity: Joint Inter-Agency Task Force South (JIATFS) NAS Key West Truman Annex Key West, Florida.

2. Description of Action:

Nature: Follow-on Requirement

Contract Vehicle: Purchase Order Number W912PX-18-P-TBD

Pricing/Contract Type: Fixed Price

Funds: Operations & Maintenance, Army (OMA) FY: 18

Name of Proposed Contractor(s) and Address: IVANTI, Inc.

698 West 10000 South Suite 500 South Jordan, UT 84095

Brand Name Buy: Yes

3. Description of Services or Supplies: JIATFS has a requirement for a firm fixed price contract for HEAT System Maintenance and Support. The Heat System is used to track all trouble calls put into Customer Service from all Users in the command. A HEAT Support agreement includes access to HEAT Software USA’s technical support desk via phone, email and online access along with the ability to upgrade to the latest release for the product software being used. In order to access this level of support JIATFS must renew the current HEAT subscription. Without this software the Customer Service Team would be unable to maintain accurate tracking of user problems efficiently and effectively.

Account Number: 061428 HEAT subscription for 35 Concurrent Users: BSAH4-N3CSU-FRUMM-BBRPV-41BGC HEAT Self Service Subscription (1 Each): FG5DP-UCWOQ-P7AYA-F4NTJ-B54C3

Period of Performance: 21 Jan 2018 to 20 Jan 2019 Total Value: $

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:

a. The proposed acquisition is particular to one manufacturer (Brand Name). The particular brand name, product, or feature is essential to the Governments requirements. The Heat System is used to track all trouble calls put into the JIATFS Customer Service department.

b. As HEAT is currently installed and utilized on JIATFS systems, no other brand name and associated software subscriptions can be employed or modified to meet the Government’s needs. Additionally, although there are resellers of the HEAT software in the commercial market place, only IVANTI, Inc. (formerly HEAT Software USA) has proprietary ownership of HEAT software and can provide the type of HEAT subscription (which includes upgrades and patches) required. This was confirmed by a letter from IVANTI, Inc. dated 10 Aug 2017 noting their Sole Brand and Sole Source Status.

Therefore full and open competition cannot be used for this procurement as it is limited to support subscriptions from IVANTI, Inc.

c. Without this software the Customer Service Team at JIATFS would be unable to maintain accurate tracking of user problems efficiently and effectively. Renewal of the software subscription will keep the software current with upgrades and patches and provide technical support via the phone or web for software questions and issues.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 apply and will be followed.

Justification will be posted with the requirement.

7. Market Research:

Upon conducting market research on or about the week of 18 Dec 2017 it has been determined that the proposed acquisition is particular to one manufacturer, IVANTI, Inc.

In accordance with (IAW) AFARS 5139.101-90(a)(1) the Army's Computer Hardware, Enterprise Software and Solutions (CHESS) program is the mandatory source for commercial information technology (IT) hardware and software purchases. CHESS contracts provide IT products and services that comply with U.S. Army Network Enterprise Technology Command, Army and DoD policy and standards. Purchasers of commercial hardware and software must satisfy their IT requirements by utilizing the CHESS contracts and DoD Enterprise Software Initiative (ESI) agreements first, regardless of dollar value. A review of CHESS and ESI on 14 Dec 2017 found that HEAT Software was not offered from the CHESS or ESI vendors. A CHESS Statement of Non-Availability was approved 20 Dec 2017.

JIATFS previous procurement under W912PX-17-F-0001 was sole source, as did by the U.S. Department of Commerce in 2012 when they negotiated a sole source basis to the company known as “Front Range” for HEAT Maintenance renewal.

On Jan 2017 Clearlake Capital Group (owners of HEAT Software USA) acquired LANDESK and rolled its portfolio company HEAT Software into the new LANDESK platform and became known as IVANTI, Inc. As such, proprietary ownership of HEAT software has transferred to IVANTI, Inc.

Front Range and LUMENSION merged to form HEAT Software in 2015. As such, Heat Software USA now holds the proprietary ownership of HEAT software and can perform the type of HEAT maintenance support required whereas Front Range owned it previously.

8. Other Facts: Current Maintenance and Support Agreement includes access to technical support desk via phone, email and online along with the ability to upgrade to the latest release for the product software being used. Site visits are not included in this maintenance and support coverage and would require additional fees through their professional services team. On 28 Dec 2017 the System of Award Management (SAM) was checked for IVANTI, Inc., Cage 3H7L4, current registration expiration is 3 Nov 2018 with no active exclusions.

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:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable using price analysis based upon historical prices and comparison between the quote and the Government estimate.

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.