70--Justification for Other Than Full and OpenCompetition - MicroFocus License Upgrade andTraining

Justification for Full and Open Competition Each justification shall contain sufficient facts and rationale to justify the use of the specific authority cited. As required of FAR 6.302-1( c ), each justification shall include the following information: 1. Requesting Agency: Corporate Franchise Data Center - Austin ("CFD") 1615 Woodward Street Austin, TX 78772 Contracting activity: Corporate Franchise Data Center - Austin 1615 Woodward Street Austin, TX 78772 2. Nature and/or description of the action: New contract for the replacement of the 20 licenses of Micro Focus Revolve Enterprise Edition (unlimited lines of code) and the 15 licenses of the Assembler add-on for Micro Focus Revolve with a 50 seat license of Micro Focus Revolve Enterprise Edition (unlimited lines of code) and an unlimited seat site license of the Assembler add-on for Micro Focus Revolve. In addition, a special tailored class by the contractor, Micro Focus International plc, on the advanced functionality of the Enterprise Edition for 35 persons. 3. A description of the supplies or services required to meet the agency's needs (including the estimated value): 1. 50 seat license Micro Focus Revolve Enterprise Edition (unlimited lines of code); total approximate cost: $187,500 with trade in of 20 existing licenses. 2. Micro Focus Revolve Enterprise Edition with Assembler add-on, Unlimited seat cost is approximately: $25,000 with trade in of 15 existing licenses. 3. Revolve Enterprise Edition training (5 days) $3,000 per day, total cost: $15,000. 4. An identification of the statutory authority permitting other than full and open competition. " 41 U.S.C. 253(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements " FAR 6.302-1 (c), application for brand name description 5. A demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited. This is an expansion of two products already in use at the Department of Veterans Affairs (hereinafter, "VA" or "Government") with refresher training. These tools allow VA to analyze application source code in many unique ways. The application source code consists of COBOL (Common Business-Oriented Language) and Assembler, the tool natively examines COBOL code as its basic design and requires the Assembler Option to analyze the Assembler code. The Micro Focus Revolve tool allows VA to search an entire application by job name, file name, variable name, literal name, statement types, program names, executions, uses (for example, where a copybook is used at, so if a code change is made to a copybook - how many and which programs must be re-compiled and re-certified), and text strings. The Government requires a tool that allows for efficient developer time and to ensure all changes to the application made by developers are accurate and appropriate. Based on market research, Micro Focus Revolve is the only known software that provides these essential functions and features. The tool is specifically essential for all changes to the Personnel and Accounting Integrated Data (PAID) application which changes more than any other application daily. In addition, it allows the following: " To do a logical step through of a program's code (simulated run); " Flow diagram a paragraph, a section, a program, or a job;. " Display On Line Data Entry screens and their input/output fields; and. " Tell where dead (unused) code is, allowing VA to make the application more efficient and cost effective. The Micro Focus Revolve Enterprise Edition (referred to as higher functionality) will give VA a predictability factor, for example a Date of Birth field were changed from year (4 digit) month (2 digit) day (2 digit) format to a julian date format year (4 digit) day (3 digit) - what would have to change, where it would have to change and the estimates for the cost in man-hours for that change. The Revolve product is already in use and the transition from the licenses VA has to the 50 seat set will be seamless with a 20 minute maximum disruption of the individual seat(s) as the licenses are switched over. Currently 38 users at the CFD require a Micro Focus seat license. Micro Focus sells the Revolve Enterprise Edition license in 25-seat packs, therefore, the CFD requires the purchase of a 50 seat pack to cover the existing 38 users. The remaining seats will be used by technical leads and managers for over site unless needed by new users. The existing 15 seat Revolve Enterprise Edition with Assembler Add-on will be exchanged for an unlimited seat license, resulting in the Government not duplicating costs when required to add users. The number of users has increased from 5 to 38 in the past year, using several different procurements. By purchasing an unlimited seat license the Government will not duplicate the cost of reacquiring the existing licenses, nor the cost of procuring additional licenses in the future. In addition the cost of maintenance subscription services (upgrades and technical support) is reduced with an unlimited seat license. Fiscal Year 2007 annual maintenance for 15 Assembler Extension Option seats was $13,600, and had increased 9.98% from fiscal year 2006. The cost of maintenance subscription services for an unlimited seat license is estimated at $10,000, $3,600 less regardless of the number of users added throughout time. 6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies. A combined synopsis/solicitation will be issued in FedBizOpps as a small business set aside, the non-manufacturing rule applies. 7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. Negotiated costs will be based on available list prices and market research quotes previously obtained. 8. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted. Market research was conducted in the form of online searches, market research quotes, and previous procurement history in order to estimate the cost to the Government if the software was replaced. Based on the online searches and previous procurement history the Government could not locate any other software manufacturers that provided software that meets the Governments requirements. Estimates were based on the cost of replacing the existing system with Micro Focus licenses, since the Government is not aware of any other products that provide the same functionality. A breakdown of the duplication of costs is provided below. A quantity of 50 users was used for Assembler for the purpose of this estimate since the cost of an unlimited quantity is impossible. The cost of maintenance for the Enterprise product is less when we upgrade because it is packaged at a quantity of 50, rather than the current maintenance that is priced separately by each package of 25. Total cost savings to the Government by upgrading the existing MicroFocus licenses is $167,127.50. Assuming another manufacturer could provide similar functionality and assuming that the cost of similar technology would be at a similar license and maintenance cost, the trade in value of $143,357.50 would be lost and the Government's would not receive any savings in future maintenance costs. 9. Any other facts supporting the use of other than full and open competition, such as: (i) Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available. (ii) When 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived. (iii) When 6.302-2 is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government. The estimated cost savings to the Government is $167,127.50. If the Government replaced the existing software it would cost an estimated $433,617.50; however by trading in the existing licenses for additional users the Government estimate is $266,490.00. A breakdown is provided above in paragraph eight above. In addition, the annual cost of maintenance will decrease by an estimated $23,770.00 each year. While saving in the initial purchase and throughout each renewal year, the Government will also save in the cost of procuring additional licenses for the Assembler Option since an unlimited seat is being acquired. The upgrade of the existing product is in the best interest to the Government based on the estimate of duplicating costs. All estimates were developed from previous procurement of the licenses and maintenance in addition to market research quotes provided by Micro Focus. 10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition. Sources will include authorized small business resellers of Micro Focus products since the non-manufacturing rule applies. 11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. The Government will send out periodic requests for information or sources sought notices once or twice before its time to renew maintenance. And the end user will need to show the Contracting Officer, before the next maintenance renewal, that continuous market research was conducted to seek new sources for the software functionality. 12. Certification requirement: (Technical/requirements personnel must certify). I certify the supporting data, including the statement of the Government's minimum needs and other rationale for other than full and open competition is complete and accurate to the best of my knowledge. _ David Roush /s/_ ___________________________ ___11/8/07_____________ Signature of Technical/Requirements Representative Date This justification is accurate and complete to the best of the contracting officer's knowledge and belief. _Kari Cozzens /s/_______________________________________ __11/8/2007____________ Contracting Officer Date Procurements over $500,000 require approval from Competition Advocate. This justification has been reviewed and approved by the Competition Advocate. N/A____________________________________________ _____________________ Competition Advocate Date