MS EA Annual Renewal

Western Area Power Administration
Exception to Fair Opportunity
Justification
Order under NASA SEWP GWAC

PR 15WA112259

1. Identification of the agency and the contracting activity
Western Area Power Administration (Western), Corporate Services Office (CSO), 12155 W Alameda Parkway, Lakewood, Colorado 80228

2. The nature and/or description of the action being approved

This requirement is for the renewal of Western's Microsoft Enterprise Software Licenses (MS EA) and annual Maintenance for FY15 as a Call Order awarded under DOE's BPA # DE-IM0000759, a CUPA established with NASA SEWP.

As an award under an existing DOE BPA/NASA SEWP CUPA contract, in accordance with FAR Part 16.505(b)(2), the exception to the Fair Opportunity Process which applies specifically to this order is: (B)‘there is only one awardee capable of providing the supplies or services required at the level of quality required because the supplies and services ordered are highly specialized'.

MS EA licenses and annual Maintenance are brand name and are only available through authorized Microsoft resellers. Through the use of the established DOE BPA, though not mandatory, Western shares the substantial price discount afforded the entire Department of Energy through the negotiated award of a strategic sourcing Blanket Purchase Agreement with a small business through a NASA SEWP CUPA.

3. A description of the supplies or services required to meet the agency's needs (including estimated value)

Purchase continuation of standard support and maintenance and software assurance for Microsoft products under the Microsoft license agreement EA#8895556.

Western Area Power Administration's Corporate Services Office plans to issue a fixed-price delivery order for Microsoft Enterprise Software Licenses and Maintenance. This requirement will be purchased through a NASA SEWP Customer User Purchasing Agreement (CUPA), DE-IM0000759, which is a DOE blanket purchasing agreement for Microsoft Software Licensing and Software Assurance. This agreement is with Alvarez and Associates, and has a five year period of performance from April 30, 2014 through April 29, 2018. The delivery order is for software assurance and licenses purchased against a fixed-price contract. The estimated value for usage year two (April 30, 2015 - April 29, 2016) is $1,257,957.88.

4. Rationale for Limiting Sources

On April 30, 2014, the DOE Office of Headquarters Procurement Services established a NASA SEWP Customer User Purchasing Agreement (CUPA), DE-IM0000759, which is a blanket purchasing agreement for Microsoft Software Licensing and Software Assurance. This agreement is with Alvarez and Associates, 8251 Greensboro Drive, Suite 230, Tyson's Corner, VA 22102. The CUPA is authorized for use by all DOE Federal and Contractor organizations, including Management and Operating (M&O) contractors. The purpose of this CUPA is to consolidate DOE acquisition of Microsoft products in order to maximize cost savings and minimize both the acquisition cycle times and administrative burdens, consistent with the Federal Acquisition and Streamlining Act. The lead DOE organization for this agreement is the Office of the Chief Information Officer (OCIO). The DOE Contracting Officer determined price reasonableness at the time the NASA SEWP CUPA was established on April 30, 2014.

Western standardized on Microsoft products to provide a single platform for desktop software support and file exchange and maintenance. While it is acknowledged that other manufacturers of desktop software could meet Western's needs, the cost to the Federal government in dollars, in interruption of operations, and in technical staff retraining, to replace Western's entire desktop software platform would be cost prohibitive and could not be recovered through competition.

5. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable

A market survey was not conducted. No other firms were contacted based on the information presented in paragraph 4 above. This requirement is a non-competitive delivery order against the NASA SEWP CUPA that DOE established through the award of the DOE BPA, which pricing was determined to be fair and reasonable at the time of the award. The purpose of strategic sourcing is to combine the buying volume throughout the Department, which DOE has accomplished through the issuance of their BPA and the NASA SEWP CUPA, giving DOE the best volume pricing available to all its agencies.

6. Any other facts to support this justification

To procure totally new products would result in an increase of effort, cost and training as well as create potential data loss, loss of system integrity, downtime and additional training needs, which is not advantageous to the Government. Duplication of entire new system would be in excess of $500,000.00.

7. A statement of actions, if any, the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated

The purpose of the strategic sourcing DOE BPA award and the SEWP CUPA was to consolidate DOE acquisition of Microsoft products in order to maximize cost savings and minimize both the acquisition cycle times and administrative burdens, consistent with the Federal Acquisition and Streamlining Act.