26-SIMACQ-E60-0005_ATCH 8. LT $350K SS JnA Final_Redacted.pdf

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Attached to
26-SIMACQ-E60-0005 SMART License Federal contract opportunity
Solicitation number
N6339426Q4012
Issued by
Department of the Navy Naval Sea Systems Command

About this file

This is a Brand Name/Sole Source Justification under $350K for a federal contract opportunity.

The Naval Sea Systems Command (NSWC) Directed Energy program seeks to procure a Smart License software subscription from Resource Analysis Corporation (RAC) to manage parts obsolescence across multiple Destroyer Guided Missile (DDG) platforms and other Navy program offices. The Smart License provides a website subscription that notifies users when Bill of Materials parts approach end of life, enabling the In-Service Engineering Agent to make timely decisions regarding part reverse engineering, redesign, or lifetime buys. The procurement is justified under 10 U.S.C. 3204(a)(1) as a sole source award based on proprietary licensing agreements that limit competition. RAC is identified as the sole developer and provider of the SMART licensed domain used to support Diminishing Manufacturing Sources and Material Shortages (DMSMS) management. The required software solution must include a DMSMS Workflow User Application with SCORE ranking and prioritization, Data Administration Application, and access to multiple integrated databases including QTEC, IHS Markit, COTS research data, FEDMALL, One Touch Supply, ILS Mart Aftermarket Database, and ERAI Suspect Counterfeit Alerts. The system must determine DMSMS health at various indenture levels, integrate dual part-level obsolescence data sources, provide integrated COTS capabilities with vendor survey features, capture color-coded alerts across all DMSMS areas, enable secure HTTPS access across CONUS, and include an integrated case management suite.

Market research conducted by PHD determined that SMART is the only commercially available product meeting the Government's level 4 DMSMS requirements. The evaluation included comparative analysis with the Keyport OMIS tool, which was deemed non-viable due to its services-based business model requiring significant annual manpower funding and the prohibitive transition costs estimated at approximately five times greater than SMART licensing costs and two years for implementation. The justification emphasizes that SMART has been in use by NSWC-PHD for over 10 years, that personnel are trained and proficient in its use, and that switching to any alternative tool would result in significant costs, downtime, and operational risk. RAC sells SMART directly to Government and industry without utilizing third-party vendors or resellers, and all software code was developed in the United States. The contracting documents are certified as accurate and complete by Christopher Lujan (Customer Advocate, E109), Julianne Surane (Legal Counsel), and Arthur Wynn (Contracting Officer, Code 027).

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Brand Name/Sole Source Justification under $350K

PID Number: N63394-26-SIMACQ-PHD-E60-0005 Directed Energy Smart License

Department: E Department

Company Name/Brand: Resource Analysis Corporation

Description of Product, Supplies or Services required to meet the agency’s needs:

Directed Energy requires the Smart License to manage the parts obsolescence. The Smart License provides a subscription to a website that notifies us when parts from the Bill of Materials are approaching end of life so that the In-Service Engineering Agent can make a timely decision to have a part reverse engineered and redesigned using newer technology parts that are available or do a lifetime buy.

Identification of Justification Rationale:

☐ The Material or service must be compatible with aspects (Form, Fit, and Function) with existing systems presently installed.

☒ A patent, copyright, proprietary data, or licensing agreement limits competition.

☐ These are “direct replacement(s)” parts/components for existing equipment.

☐ Urgency.

Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 3204(a)(1). Only one responsible source and no other supplies or services will satisfy agency requirements.

RAC is the developer of SMART licensed domain, used to support Directed Energy systems, which is applicable across multiple DDG platforms, as well as other Program Offices for Diminishing Manufacturing Sources and Material Shortages (DMSMS) Programs. Directed Energy uses this unique licensed domain to leverage this commercial product in meeting their DMSMS management goals, roles, and responsibilities for both the Program and Project Offices. Specifically, PHD E64 requires a DMSMS software and content solution to meet the following list of specific requirements:

a. Software:

i. DMSMS Workflow User Application with SCORE ranking and prioritization

ii. Data Administration Application

b. Data Content:

i. QTEC Database and Q-Star web site

ii. IHS Markit Database and Parts Intelligence web site

iii. Commercial-Off-The-Shelf (COTS) Research/Refresh Candidates

iv. FEDMALL and One Touch Supply integrated data

v. Access to ILS Mart Aftermarket Database

vi. Access to ERAI Suspect Counterfeit Alerts

3. Features and Capabilities:

a. Must be able to determine DMSMS health at various indenture levels for Supply, COTS, Parts, Circuit card roll up, and End of Support.

b. Must have dual part level obsolescence data sources integrated in a single software solution.

c. Must have an integrated COTS capability with internal and external vendor survey capabilities for displaying End of Life availability data.

d. Must be able to capture alerts in all DMSMS areas including supply, obsolescence, and end of support with color coding and severity status.

e. Must be able to be accessed through a secure (https) internet URL and anywhere in the CONUS by internet.

f. Must have an integrated Case management Suite.

g. Must have a Case Management Suite able to manage solutions and alert if the solution is in threat of becoming a DMSMS issue.

SMART is the only product that meets all specific requirements. SMART is uniquely designed to be able to handle configuration system platforms and baselines to determine their DMSMS status and deliver the results with speed and accuracy to support the complexity of a ship class and all their weapon/combat equipment at all indenture levels across the supply chain. SMART also provides an integrated DMSMS workflow process and secure access by the NAVSEA community allowing for complete collaboration between all the Program stakeholders. These SMART features can only be obtained by using RAC’s SMART licensed tool, as no other source could provide the interchangeability with existing DMSMS tools without redesigning our internal processes. This unique tool enables the Directed Energy team to provide services to sailors, Design Agent, ISEAs, Depot/Performance Based Logistics Design Contractors as well as the Navy’s Supply Chain.

The DMSMS Management handling must be compatible in all aspects (form, fit, and function) with existing NSWC PHD E64 systems. This licensed domain would require a major engineering effort to duplicate a functional alternate or substitution of capabilities. Any new tool would need to supply the same level of security, contract with the same mix of predictive databases, counterfeiting services, and unique scoring methodology. The SMART product has been in use by NSWC-PHD for 10+ years and due to significant efforts in loading the configuration data and generating cases, it is a mature and proven DMSMS tool. Directed Energy personnel in Code E64 are trained and proficient in the use of SMART and the DMSMS process and workflow centers around the utilization of the SMART application and embedded content. No other tools have been identified to meet the requirements and would require significant time and money to implement a new means or manual process which would result in significant costs and downtime. Specifically, based on industry surveys and detailed comparisons, the cost to utilize any other DMSMS tool would be approximately five times greater than the estimated cost to utilize SMART, which is a substantial duplication of cost that is not expected to be recovered through competition, and which would present undue risks and uncertainties. It is also anticipated that it would take an estimated two years to implement any type of transition to a different tool, which would likely have lesser capabilities at a much higher cost to the Government.

Resource Analysis Corporation (RAC) is the sole source and supplier of SMART software and is sold directly to Government and industry and does not utilize nor sell to third party vendors or resellers. SMART is a proprietary product of RAC that was solely developed with all software code generated in the United States.

Market Research Conducted:

Per the In-Service Engineering Agent (ISEA), there are no other similar commercial items, other than SMART, that currently meet the Government’s requirements. PHD conducted an extensive industry survey and comparative analysis between all DMSMS tools in the marketplace. Given PHD needs a robust level 4 solution under the SD-22DMSMS Guidebook definitions due to the complexities and requirements associated with DMSMS management SMART is the only commercially available product that meets NSWC PHD’s needs. With the closest tool to SMART by comparison of requirements being the Keyport OMIS tool additional focus was placed on the business model and cost factors between the two. The Keyport OMIS tool is Government owned with a business model that is “services” based and as such requires a significant amount of funding to be provided on an annual basis for manpower, that would not only be costly but would “outsource” the work away from PHD personnel while having non-ISEA personnel lacking domain expertise performing the work that is inefficient and costly. SMART is a commercial tool that provides a full-scale and turn-key solution that enables Directed Energy E64 personnel to be 100% self-sufficient with a use model and workflows that have proven to be highly efficient and cost effective. Over and above these annual costs would be the absorbent cost and time factors associated with “transitioning” from SMART to another tool such as OMIS. Based upon a detailed evaluation with hands-on assessment and trial of OMIS it was determined from a capabilities and requirements perspective that OMIS was not a viable option or path to pursue and in fact no other DMSMS tools come close to the SMART tool to meeting the needs of NSWC-PHD across the spectrum of evaluation criteria in the comparative analysis. The specific requirements necessitate the need for a DMSMS software / content license to be a sole source selection of the SMART product for which the contractor RAC is the only provider of such a specialized and unique product.

Statement of Actions, if any to Remove Barriers to Competition in the Future:

NSWC PHD Contracts Office will continue to conduct market research as warranted to provide a broader vendor base as applicable for the types of supplies/services covered by this document. If another potential source emerges, NSWC PHD will assess whether competition for future requirements is feasible.

WYNN.ARTHUR.P.JR.1080480870 Digitally signed by WYNN.ARTHUR.P.JR.1080480870 Date: 2026.01.07 09:07:42 -08'00'

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

_Christopher Lujan, Customer Advocate, E109, 805-989-1626

Signature Name (Print) and Title (Code) Phone No. Date LUJAN.CHRISTOPHER.J.138 Digitally signed by

LUJAN.CHRISTOPHER.J.1384736315

4736315

Legal Counsel:

Date: 2026.01.06 08:27:15 -08'00'

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Legal Office:

Julianne Surane, Assistant Counsel Phone No. 805-228-8520 Date

Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer Signature:

Arthur Wynn, Contracting Officer, Code 027, 805-330-0370 Date

DEBERRY.JULIANNE.SURANE.152288779 Digitally signed by DEBERRY.JULIANNE.SURANE.1522887796

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