CITF Operation and Maintenance

1. Identification of the agency and the contracting activity: The requiring activity is the Treasury Office of Financial Stability (OFS) and the contracting activity is the IRS Office of Treasury Procurement Services (OTPS). 2.a Nature and/or description of the action being approved: The purpose of this limited-sources justification is to obtain approval to award a labor hour FSS order against GSA Schedule GS-35F-446AA with HPE Federal (Hewlett-Packard), a large business); 13600 EDS Drive, Herndon, VA 20171, to operate, maintain, and enhance custom applications for operational systems supporting the Troubled Asset Relief Program (TARP). The need date for these services is July 21, 2019. The period of performance will be for a one-year base period and two, one-year option periods and will include FAR Clause 52.217-8 Option to Extend Services. See Requisition No. 19PR-OFS-0002 for a copy of the performance work statement. 2.b Name of the vendor: Hewlett Packard Enterprises (HPE) 2.c Requisition No.: 19PR-OFS-0002 2.d Bridge contract: ? Yes ? No 2.e Brand name: ? Yes ? No3.a A description of the supplies or services required to meet the agency's needs:The proposed acquisition is to acquire contractor support to operate, maintain, and enhance custom applications for operational systems supporting the Troubled Asset Relief Program (TARP). The applications include the custom developed Consolidated Investment Transaction Flow (CITF) to track TARP program funds for the operation of the Transaction Processing System and Accounting Sub-Ledger for OFS and the creation of required reports based on CITF data. This work also entails: providing the Information Systems Security Officer (ISSO) with change management and audit logging processes in relation to the CITF application; providing continuous operations and maintenance services for OFS' IT environment that includes Modular Systems Management and Support, "Stick Build" Solutions (waterfall development or agile approach), and Production Support for: - O&M application development of "stick build" solutions, including .NET, InfoPath and SQL Server-based applications; Development, operations and maintenance of solutions using OFS IT's modular systems capabilities; - Retirement of the systems as the OFS concludes its mission.3.b Includes IT: ? Yes ? No NAICS 811212; PSC: R799 3c IGCE/Estimated dollar value:The IGCE is $1,800,558 for the Base Year and two twelve-month option periods. Refer to the IGCE for additional details. 4.a Identification of the authority being used (Check the appropriate box that applies).? FAR 8.405-6(a)(1)(i)(A) - An urgent and compelling need exists and following the procedures would result in unacceptable delays.? FAR 8.405-6(a)(1)(i)(B) - Only one source can provide the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.? FAR 8.405-6(a)(1)(i)(C) - In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order or BPA provided that the original order or BPA was placed in accordance with FSS procedures in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures. ? FAR 8.405-6(b) - Items peculiar to one manufacturer.4.b Supporting Rationale: The proposed contractor's unique qualifications and the nature of the acquisition requires use of the authority cited as follows:i. HPE created and supports unique custom-developed IT solutions. Under two previous GSA Orders, HPE developed and implemented the Consolidated Investment Transaction Flow (CITF) application which tracks TARP investment programs. CITF is critical for the operation of the Transaction Processing System and the Accounting Sub-Ledger for OFS as well as for the creation of required reports based on CITF data. The CITF application is subject to GAO audit every year.ii. When the first HPE Order was awarded in 2010, OFS was staffed with nearly 300 federal employees. That number is currently at about 20. Despite the declining staff numbers, OFS still has $52 million outstanding in investment programs and $4.3 billion in potential housing disbursements. As the OFS staff declines, the institutional knowledge the contractor maintains becomes more critical and relied upon. OFS lacks the technical expertise to run, maintain or transition these solutions to a new vendor and to work with our internal technical partner, the Office of the Chief Information Officer (OCIO), to maintain the servers, when directed to do so by OCIO. iii. Procuring the services through another contractor would impose excessive risk to the TARP program in the current political and strategic environment. Given the phasing out of staff, OFS relies heavily on HPE's institutional knowledge to resolve issues that arise, often from Congress. OFS cannot be exposed to the risk of a new vendor being unable to support the aging systems, or maintain and further implement solutions, as needed.iv. HPE: Has institutional knowledge that now only resides with them due to OFS employee departures around the "sunset" of the OFS organization. - Knows all CITF code, functions, deployment packages and instructions, troubleshooting, development model, and report creation. Possesses full understanding of CITF IT Internal Controls processes, including access management, change management and audit logging processes. Has 9-year experience developing a CITF disaster recovery plan and has successfully conducted repeated CITF disaster recovery exercises.5. A determination by the ordering activity Contracting Officer that the order or BPA represents the best value consistent with FAR 8.404(d): The Contracting Officer has determined that the GSA Order with HPE represents the best value consistent with FAR 8.404(d) and lowest overall cost alternative (considering price, special features, administrative costs) to meet the Government's needs based on hourly labor rates deemed fair and reasonable. The IRS Office of Treasury Procurement Services will follow FAR 8.405-2(d) and consider the offered level of effort and mix of labor to determine if the total price is reasonable for this requirement.6. A description of the market research conducted among schedule holders and the results or a statement why market research was not conducted: Treasury Mandatory Sources were considered in accordance with DTAP Part 1008 as well as small businesses in accordance with DTAP 1008.405-5. The risks to schedules and quality of work products inherent with changing to another vendor are significant, such as impacts to system failures, poor quality audits and slower response time for Congressional Report requests. The rapid wind-down of the TARP, when combined with the reality that the present, proven processes were developed by the current contractor, HPE, gives assurance that the TARP can close its doors in 2021-2022 with the guarantee of a successfully concluded effort. During the last procurement in 2016, other GSA Schedule holders were considered. It was concluded that HPE could best provide the services without placing potential risk to the OFS mission. 7.a Any other facts supporting this justification:Please refer to the attached documents that support this LSJ, including: PWS, Acquisition Plan and IGCE. It is difficult to provide an estimate of cost to the Government, if award was not made to the current vendor, due to staff time spent for training.7b Attachments: ? Yes ? No. Performance Work Statement, Acquisition Plan and Independent Government Cost Estimate.8. A statement of the actions, if any, the Requiring Activity and Contracting Activity may take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for the supplies and services is made:As TARP originated as a temporary program and is currently winding down and not expected to exist in a few years, a subsequent action is not anticipated at this time. This PWS includes activities to transfer the system into an archived status, after which no maintenance or continued support will be provided.9. Certifications and Approvals:9.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided (e.g., the Government's minimum needs or requirements, or other rationale for the limited sources) and which form the basis for this justification for an exception to fair opportunity, are accurate and complete to the best of my knowledge and belief.Name: Date:Signature: 9.b Contracting Officer Certification and Approval. I hereby determine the circumstances of this acquisition support the justification to acquire these supplies or services on a limited source basis. I also certify this limited-sources justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement on a limited-source basis.Name: Aleta J. Dust Date:Signature: 10. Additional Reviews and Approvals (As applicable):10.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government's need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to the Associate Bureau CIO(s).)Name: NOT APPLICABLE Date:Signature:10.b Advocate for Competition (if over $700,000, but not exceeding $13.5 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the ordering activity's Advocate for competition, I hereby approve this limited-sources justification.Name: Date:Signature: 10.c Head of the Procuring Activity or Authorized Designee (if over $13.5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this limited-sources justification.Name: NOT APPLICABLE Date:Signature: 10.d Treasury Chief Information Officer (for IT requirements that are over $68 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government's need. Therefore, I hereby consent to the approval of this justification.Name: NOT APPLICABLE Date:Signature:10.e Senior Procurement Executive (if over $68 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, I hereby approve this limited-sources justification.Name: NOT APPLICABLE Date:Signature: