Renewal of IBM DB2 Software Licenses

This procurement is for the renewal of DB2 server software maintenance with a period of performance of 1 October 2012 through 30 September 2013. The software is required for the Defense MilPay Office (DMO) Databases on all levels from workstations to mainframe and is necessary for the support of operational functions. DMO development staff has accessed DB2 support 4 times this year in addition to IBM's normal deployment of Fix-Packs. Fix-Packs are deployed by IBM approximately on a monthly basis, or more often if needed as problems are reported and corrected. Without this support, DMO development and deployment could be halted and production in the field could be adversely impacted. The estimated cost of this acquisition is: $287,052.00 Reason that this is limited source procurement (i.e., proposed contractor's unique qualifications, etc.) IBM is the only manufacturer of the DB2 server software and supplier needed by DFAS-ZTBCC. The DB2 license used in the development lab is used to simulate the environment of military disbursing offices throughout the world. No other product on the market will interface with the systems utilized the disbursing offices. Changing the software application to another manufactured product is not feasible because it cannot interface with the live dispersing office systems; these systems will not be reformatted to accommodate a modification to our test environment-therefore the environment must mirror the live systems. This requirement is for the renewal of 4,560 PVU of IBM DB2 licenses currently under a maintenance agreement. Renewal of these licenses at a reduced cost to the agency is more effective than permitting them to lapse and purchasing new licenses in the event a security patch or support from the vendor become necessary. The market estimate for purchase of these licensees if not renewed is approximately $315.00 per PVU; for an estimated total of $1,436,400.00. It is a cost savings of $1,100,000.00 to renew the existing licenses that the agency currently has under maintenance than to risk lapse and potential negative cost impact to the agency. Market survey (indicate if any other firms were contacted or expressed interest): Market research was conducted for the purpose of seeking as many potential sources as possible. Although IBM is the sole manufacturer and provider of IBM DB2 Software and support, there are multiple distributors with the required software/maintenance and support available on GSA FSS. An RFQ will be posted on GSA, utilizing the GSA-eBuy. Competition will be sought among all authorized resellers for the best possible pricing. This requested software is available through DoD ESI contract, DoD ESI BPA guidance directs to place orders against the IBM Consolidated Products GSA contract. The following sources were contacted for pricing and availability 1) Provista 2) International Business Machines, Corporation 3) Immix Technology Leveraging DFAS' current use of the IBM DB2 product, along with the competitive pricing under GSA, as well as an open market price comparison, the contracting officer is confident in obtaining the best value for DFAS. Based on market research, it is anticipated that GSA pricing will be lower than open market pricing