RedactedACC1595.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL

AND OPEN COMPETITION JUSTIFICATION

Purchase Request #: 12TARN04012 and 12TAG60931200

1. Contracting Activity: The U.S. Army Contracting Command-Warren, MI 48397-5000 is the procuring activity for this action.

2. Description of Action: The U.S. Army Contracting Command-Warren proposes to award a new firm fixed price contract to Parametric Technology Corporation (PTC), 140 Kendrick Street, Needham, MA 02494, awarded on a noncompetitive basis, for the purchase of software maintenance support for previously procured Windchill software licenses.

3. Description of Supplies/Services: PTC will provide annual software maintenance support for licenses that are in operation within the TACOM LCMC enterprise community (TACOM). The contractor will provide annual maintenance updates for all installed user licenses that are in place at

TARDEC, which supports mission requirements for the following software applications:

a) Windchill PDM – 3886 Licenses

b) Windchill Foundation – 3886 Licenses

c) Windchill Info*Engine Access – 3886 Licenses

d) Windchill ProductView for Windows – 3886 Licenses

e) Windchill Information Modeler – 1 License

f) Creo Graphics Server Pkg for Creo View – 2 Licenses

g) Unigraphics Graphics Server Package for Windchill – 1 License

a) Windchill Supplier Management – 500 Licenses

b) Windchill Business Report Monitor –4 Licenses

c) Windchill MPMLink Process Planning – 5 Licenses

d) Windchill Business Report Author – 2 Licenses

e) Windchill MPMLink for Engineering – 10 Licenses

The estimated total purchase price for the base year is $265,292.40; period of performance is (12) months. The type of funding is FY 12, Research, Development, Test and Evaluation or RDT&E and

FY 12, Operation and Maintenance or OMA funding..

4. Authority Cited: The statutory authority permitting other than full and open competition is 10

U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 -- Only One Responsible Source and No Other

Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: FAR 6.302-1(a)(2)(ii)(a) provides specialized supplies available from the original source to avoid substantial duplication of cost to the Government. TARDEC requires maintenance support for previously purchased Windchill software licenses. TARDEC has been using

Windchill as the software engine in the Advanced Collaborative Environment (ACE) administrative and engineering system since 2002. Replacement costs would include buying 3886 new licenses from a competing vendor estimated at $3120.00 per license and replacement hardware. The total replacement cost to purchase new software for the ACE is estimated at $10 million. There would be an estimated (12) month delay for procurement, installation, testing, migrating Windchill data over to the new system, training, and to obtain information assurance certification and accreditation.

The Government does not have the funding to replace the fully functioning Windchill admistration and engineering system that is currently in operation and deployed throughout the TACOM LCMC community workforce. The costs associated with developing new software could not be recovered in the next five years. Any change in the Windchill admistration and engineering system would require developing and fielding new software and contracting new support for those systems. We cannot afford any delay because the systems Windchill supports are currently in production.

6. Efforts to Obtain Competition: PTC is the sole open market supplier of Windchill software licenses and maintenance support for U.S. Army. A combined synopsis solicitation will be posted in accordance with FAR 12.603 Streamlined Solicitation for Commercial Items.

7. Actions to Increase Competition: All efforts have been made to ensure this acquisition meets the requirements outlined in FAR 6.1 Full and Open Competition. TARDEC will continue to conduct a review of the requirements for this program using Internet sources, routine attendance and participation at technical conferences and consortia, review industry and journal publications, and collaborate with industry leaders, subject matter experts, other Government agencies, and Industry resources. 9 March

2012, a Sources Sought was issued in an effort to increase competition and to serve as market research to validate PTC is the only open market supplier of Windchill software. To date, no responses were received.

8. Market Research: On 01 March 2012, contracting office contacted PTC to determine who the federally authorized retailers are for Windchill and confirmed PTC is the sole source and they do have a General Services Administration (GSA) vendor. PTC validated that they do not have authorized vendors sell to the Government, due to the significant discount pricing provided to the Government.

Requirements office conducted another telephone interview on 22 February 2012 with PTC’s license and maintenance support point of contact and determined the GSA Federal Supply Schedule vendor, IMMIX Technology Group, is authorized to provide software licenses and maintenance to the

Government; however the GSA price is 5% higher than PTC’s open market price. PTC’s GSA vendor is not authorized to provide any further discount to the Government. On 02 March 2012, the requirements office conducted further market researched in which they conducted an internet search utilizing the Google search engine for Windchill Maintenance which returned links to Parametric

Technology Corporation. Also, on 02 March 2012, requirements office conducted additional market research through GSA Advantage for Windchill Maintenance and returned no other results.

9. Interested Sources: The notices required by FAR 5.201 will be published and any proposals received will be considered to maximize subcontracting opportunities. To date, no other sources have written to express an interest. The notices required by FAR 5.201 shall be published, and that any bids or proposals received shall be considered.

10. Other Facts: This requirement was previously procured on two separate contracts. The first contract for Windchill software maintenance from PTC, issued on 20 September 2010, was for

$381,074.85 for fiscal year 2011 maintenance; period of performance was twelve (12) months (ref:

W56HZV-11-C-L502). The second contract had a previous purchase price of $57,860.00, was issued on 21 September 2010 for fiscal year 2011 maintenance; period of performance was twelve (12) months (ref. W912CH-09-C-L532 P00001, exercised option).

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Brian Brumm Date: _3/6/12___________________________

Title: Computer Scientist Signature:

12. Requirements Certification: Include the following statement:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Stephanie York Date: ____3/23/12________________________

Title: COR Signature: __//S//_______________________

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the

Government for this contract action will be fair and reasonable based on comparison of previous purchase price in addition to current market research. In accordance with FAR 15.403-1(c)(3), any acquisition of an item that meets the commercial item definition in 2.101, or any modification as defined in paragraph (3)(i) of that definition, that does not change the item from a commercial item to a noncommercial item, is exempt from the requirement for certified cost or pricing data.

Name: Patrick N. Watkins Date: __23 Mar 12__________________________

Title: Contracting Officer Signature:

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Patrick N. Watkins Date: __23 Mar 12__________________________

Title: Contracting Officer Signature:

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION CMO

Control # 10-128

Based on the foregoing justification, I hereby approve the procurement of Windchill Software

Maintenance Support from PTC in Needham, MA. on an other than full and open competition basis, pursuant to the authority of 10 U.S.C 2034(c) (1) and FAR 6.302-1, provided that the services and property described herein have otherwise been authorized for acquisition. The maximum total value for this action is $265,292.40.

Date: 23 Mar 12

Signature: