HPE_LSJ_Redacted.pdf

Control No: 17-004 Contractor: Hewlett Packard Enterprise Company

Department of the Army FAR 8.405-6 Limited Sources Justification Under the General Services Administration

Federal Supply Schedule Program

1. Contracting Activity: National Guard Bureau (NGB-AQ) 111 South George Mason Drive Arlington, VA 22204-1373.

2. Description of Action: Army National Guard Information Management Services Division (ARNG-IMS) requests a firm-fixed-price task order under the General Services Administration (GSA) Federal Supply Schedule (FSS) Program with Hewlett Packard Enterprise Company 13600 EDS Drive Suite 102, Herndon, VA 20171-3299. The Government will execute this action against FSS contract GS-35F-025DA. Projected award is January 2017 and fiscal year 2017, Operations and Maintenance funds will be used. A formal acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

This action is a follow-on order to contract W9133L-16-F-0010. That order was not competed under authority FAR 6.302-1(a)(2)(iii)(A). Paragraph, “Actions to increase competition” of the previous justification, stated: “The Government will continue to monitor changing market conditions that could impact the marketplace and create a competitive environment. Any future requirement will be solicited IAW applicable federal acquisition regulations.” Those actions were accomplished by reviewing GSA and Computer Hardware Enterprise Software and Solutions (CHESS) marketplaces for possible vendors in June and July 2016.

3. Description of Supplies/Services: The ARNG-IMS is renewing the Hewlett Packard Enterprise (HPE) Hardware and Software Maintenance Support for all existing HPE equipment utilized by ARNG, Continuity of Operations Program (COOP) site and 54 States and Territories. HPE Hardware and Software Maintenance Support includes:

Enterprise Virtual Array (EVA)-8400, Fiber Channel; servers within the Information Services Division (IMS) Data Processing (IMS-P), Test Lab, Storage Area Network (SAN), SAN Switch, Bilo Software, Tape Library; and servers that support Standard Installation and Division Personnel Reporting System (SIDPERS), Automated Fund Control Order System/Joint Uniform Military Pay System Standard Terminal Input System (AFCOS/JUSTIS) within 54 states, Data Protectors, Planning Resource Infrastructure Development and Evaluation (PRIDE), Enterprise Data Warehouse (EDW), Resource Management (Rm-Online), and My Unit Pay (MUP) applications. This support is a Premier Level hardware and software maintenance support which includes 24X7 coverage of telephonic and onsite support to resolve issues, parts and materials, licenses to software updates, installation advisory support, documentation updates, Knowledge Database, HPE Books online, and reports upon request.

Period of Performance: 01 February 2017 to 31 January 2018 Total Value: .

4. Authority Cited: Title III of the Federal Property and Administrative Services Act of 1949 (41U.S.C. 251, et. Seq) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6 and substantiated by the following: 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.

5. Reason for Authority Cited:

(a) Although the Government currently owns the HPE hardware, HPE is the original software developer and the only source, other than authorized retailers to provide HPE hardware and software maintenance support. HPE is the only known contractor that possesses full proprietary data rights for the HPE hardware and software, and necessary technical support. HPE has been the hardware and software maintenance support provider since the hardware was purchased. Any service performed by an unauthorized 3rd party voids HPE warranties. HPE software support provides the license to use patches, updated HPE-Unix releases, storage products, and associated software and is only available from HPE. Access to all the latest documentation, software releases and firmware updates is limited to information that is on HPE’s public domains. Only HPE personnel have access to prerelease or problem specific information.

HPE hardware and software maintenance ensures ARNG has access to firmware security patches and updates can be downloaded from HPE and applied to all hardware as necessary. Without these security patches and updates, the systems would be vulnerable to attack and would have to be removed from the network. The affected systems and applications are necessary for the continued support of the Army National Guard.

ARNG requires annual maintenance renewal support for the continued software upgrades and maintenance to ensure the software is functional and able to properly back up the data on ARNG and 54 States servers. Failure to renew the HPE hardware and software maintenance contract could result in degraded software functionality negatively impacting capabilities across the enterprise.

The HPE hardware maintenance also supports the equipment used throughout the NGB and the 54 states and territories. If the Readiness Center, State or Territory experiences hardware failure, there will be an immediate impact on the reporting of critical personnel data, and some systems required during emergencies to support operations would be unavailable. Both the hardware and software maintenance are necessary to ensure the ARNG is able to successfully accomplish its mission.

Competing this requirement would also require a substantial duplication of cost to the Government that would not be recovered through competition. The Government owns approximately 8,760 items that include web servers, data base servers, storage area networks, and tape libraries, which would have to be replaced if HPE was not the successful offeror. The total replacement value of those items is approximately

, not including delivery, installation, and training costs. This estimate was derived from the most recent Computer Hardware and Enterprise Software Solutions (CHESS) contract pricing for the major end items. HPE has the experience and resources on staff necessary to successfully provide continuity of services. Competing this requirement among the resellers would also result in a higher price as the resellers will add their overhead and other fees to the HPE price.

(b) Alternatives: The only alternative available to the Government is to replace the current hardware with that of another brand having similar or higher technical specifications. However, market research suggests that the switching costs associated with the initial procurement and software implementation would largely outweigh the benefits of fielding a modernized data backup solution.

6. Actions to Increase Competition: The Government will continue to monitor changing market conditions that could impact the marketplace and create a competitive environment. Any future requirement will be solicited IAW applicable federal acquisition regulations.

7. Market Research: In June and July 2016, GSA and CHESS were reviewed for potential vendors and discussions were held directly with HPE. It is mandatory that Army required items of Information Technology be procured through Computer Hardware Enterprise Software and Solutions (CHESS) per AFARS Part 5139 Acquisition Of Information Technology. Market research established that CHESS could not provide this requirement and as a result, a Statement of Non-availability was obtained. Market research further established that the requirement is not available through small business on CHESS as prescribed in FAR19.202-2 -- Locating Small Business Sources. It was discovered that HPE is the only source provider able to provide the hardware and software maintenance on its proprietary hardware and software. Historically this support has been provided to ARNG via a hardware and software license agreement with HPE including existing HPE IT equipment.

8. Other Facts:

a. Procurement History

Contract: W9133L-16-F-0010 Contractor: Hewlett-Packard Enterprise Company (HPE) Award Date: 10 March 2016 Competitive Status: Sole Source Authority: FAR 6.302-1(a)(2)(iii) Only one responsible source

Contract: W91QUZ-07-D-0004-N09PD10053 Contractor: NCI Information Systems, Inc.

Award Date: 01 July 2015 Competitive Status: Sole Source Authority: Unknown

Contract: W9133L-14-F-0043 Contractor: Hewlett-Packard Company (HP) Award Date: 15 September 2014 Competitive Status: Competitive

Contract: W9133L-13-F-0032

Contractor: Hewlett-Packard Company (HP) Award Date: 19 April 2013 Competitive Status: Competitive Authority: FAR 8.405-6(b) Items peculiar to one manufacturer

Contract: W9133L-12-F-0018 Contractor: Hewlett-Packard Company (HP) Award Date: 12 December 2011 Competitive Status: Sole Source Authority FAR 6.302-1 Only one responsible source

Approval Based on the foregoing justification, I hereby approve the procurement of HPE Hardware/Software Maintenance and support under Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et Seq.) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6(a)(1)(i)(B), subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Date: Signature: __________________________

Principle Assistant Responsible for Contracting