1.27 FSS Sole Source Justification ABOVE SAT - Redacted.pdf

Source Selection Information – See FAR 2.101 and 3.104

SSJ# 26-163

FSS SOLE SOURCE JUSTIFICATION (ABOVE SAT)

1. Identification of Requiring Activity and Contracting Activity.

This is a Sole Source Justification in accordance with GSAR 538.7104-3(b). The requiring activity is the Naval Oceanographic Office (NAVOCEANO); the contracting activity is NAVSUP Fleet Logistics Center (FLC) Norfolk, Contracting Dept., Fleet Directorate.

2. Nature and description of contract action. This acquisition is conducted under the authority of the Multiple Award Schedule Program (Title 41 U.S.C. § 152 (3) and Title 40 U.S.C. § 501, Services for Executive Agencies). This sole source action is to be awarded as a new Federal Supply Schedule delivery order against a Federal Supply Schedule to the Environmental Systems Research Institute, Inc. (ESRI) (CAGE: 0AMS3 – Other than Small Business). The placement of a firm-fixed-price (FFP) delivery order is anticipated.

A portion of this support (ESRI software licenses) is being provided through 30 June 2026 by ESRIunder delivery order #N0018925F0483 (GSA #GS-35F-253CA). This delivery order was issued by NAVSUP FLCN contracting office and resulted from a limited source action in accordance with FAR 8.405-6(a)(1)(i)(B).

NOTE: Since the instant requirement consists of a different ESRI software license mix, this action is considered a new requirement.

3. Description of Required Supplies/Services. The proposed acquisition is to obtain ESRI software licenses and maintenance support. It is intended to acquire these licenses and support to ensure that annual maintenance for various ESRI products, supporting the Intelligence Community (IC), is continued. ESRI products are primarily utilized for data analysis and preparation of fleet products.

Delivery Data and Coverage Period:

o Delivery Date: On or before 01 July 2026 o Coverage Period: 01 July 2026 through 30 June 2027

Independent Government Estimate (IGE): $ Funding Type: The resultant delivery order will be funded with fiscal year (FY) 2026 annual appropriations (Operation and Maintenance, Navy – O&M,N)

4. Identification of the Justification Authority and Supporting Rationale.

The exception supporting the placement of an order exceeding the SAT on a sole source basis is:

GSAR 538.7104-3(b)(1)(ii) – Only one source is capable of providing the products, services, or solution required at the level of quality required because the products, services, or solutions are unique or highly specialized.

The instant requirement is to acquire ESRI software licenses and maintenance support. These licenses and support are essential to Code N6 in support of the Meteorology Operational Mission Information Technology - Oceans (MOMIT Oceans) Program. ESRI software is used for capturing, managing, analyzing, and displaying geographically referenced information in high resolution. ESRI GIS tools uniquely allow NAVOCEANO users to view, understand, question, interpret, and visualize oceanographic data in many ways that reveal relationships, patterns, and trends in the form of maps, globes, reports, and charts. Making correct decisions about location is critical to the success of NAVOCEANO's mission. This maintenance support provides software and documentation updates, as well as customer application notes, required to maintain the existing ESRI workstation/server licenses. This functionality is accessible via an easy-to-use interface that is customizable and extensible through models, scripting, and applications. N6 requires continued use of the software to share data and information in the same ESRI formats with other NAVOCEANO programs and departments that are also utilizing the same software solution.

As outlined in ESRI.’s sole source letter (dated 2 January 2026), ESRI is the sole provider of its products and maintenance for the Government, and the company does not have a contractual relationship enabling any third party to resell ESRI maintenance to the Government on a standalone basis. There are numerous resellers of the products utilized, however, those resellers do not have source code or authority to provide the software license renewal and the maintenance support required. To eliminate the use of ESRI software, would require NAVOCEANO production codes to purchase and implement new software at an approximate cost of $ for the first year and $ for each year thereafter for 700 users. The time required to acquire new software, retrain personnel and change internal processes would exceed 18 months, which would have a negative impact on the ability of NAVOCEANO to meet critical Department of War (DoW) mission goals. NAVOCEANO requires the capability to read from VPF (DNC), S-57, H93, and myriad other formats to generate products from full breadth of possible resources. ESRI offers that capability without compromise to the NAVOCEANO mission. Workarounds exist for some formats, but the result is a significant increase in time required to generate products and moderate decrease in product quality/accuracy.

Therefore, the only responsible source for the instant requirement is ESRI.

5. Determination of Fair and Reasonable Price. GSA has determined the prices of supplies of the schedule contracts to be fair and reasonable for the purpose of establishing the schedule contract. Per DFARS 208.470(d), GSA’s determination does not relieve the ordering activity Contracting Officer from the responsibility for making a determination of fair and reasonable pricing for individual orders, blanket purchase agreements (BPA), or orders under BPAs.

Therefore, ordering activities are responsible to make a separate determination of fair and reasonable pricing for individual orders, BPAs, and orders under BPAs. The Contracting Officer will determine, using the procedures in FAR 15.404-1, that the prices are fair and reasonable and will document such determination with a level of detail commensurate with the complexity and circumstances of each order. By placing an order against a schedule contract, the ordering activity Contracting Officer concludes that the order represents a fair and reasonable price and best value to the Government.

6. Description of market research among schedule holders and the results or a statement of the reason market research was not conducted. The requiring activity and contracting activity have conducted market research among schedule holders. Market research was conducted in May 2026 by informal vendor pricing and performing internet searches to determine if commercial sources are available for the required supplies. It was found that ESRI is the only manufacturer who can provide the software for this mandatory requirement and there are no authorized resellers.

7. Any other facts supporting the justification. This procurement uses a GSA Federal Supply Schedule and will be solicited and awarded in accordance with GSAR Subpart 538.71.

8. Actions the Agency may take to remove or overcome barriers to competition.

For the reasons set forth in Paragraph 4, the contracting activity has no plans at this time to compete future contracts for the types of supplies/services covered by this document. However, if another potential source emerges, the contracting activity, NAVSUP FLC Norfolk Contracting Department, Fleet Directorate, will assess whether competition for future requirements is feasible.