842469119 FY24 ATICTS JA Final_NS_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting Procurements under FAR Part 12, and FAR Part 15

Purchase Request Number:

Contract Number: To be determined (TBD) Task/Delivery Order Number: TBD Procurement Title: Automated Tool Inventory Control and Tracking System (ATICTS) Software Support Estimated Value:

Statutory Authority: FAR 6.302

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(OTFAOC)

Justification for OTFAOC Number: Not applicable

Upon the basis of the following justification, I, as Contracting Officer, hereby approve this limited source justification in accordance with FAR 6.302 as the particular brand-name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs. The acquisition referenced herein is conducted under the authority of the MAS Program.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

Headquarters, Army Material Command G3 Supply Chain Management Directorate Logistics Information Systems Division - Item Introduction and Sustainment Maintenance Branch Redstone Arsenal, Alabama 35898

Contracting Activity:

Defense Information Systems Agency (DISA)/Defense Information Technology Contracting Organization (DITCO) – PS8413 2300 East Drive Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

The Government’s need is to procure proprietary brand-name, commercial off-the- shelf ATICTS software support renewal for United States (US) Army Material Command (AMC) maintenance depot datacenters. The procurement will be awarded as a firm-fixed-price (FFP) delivery order to the original equipment manufacturer (OEM), Data Enterprise of the Northwest, Inc., and sole provider of the ATICTS software support, via an open market procurement. Data Enterprise of the Northwest, Inc., indicated as of August 1, 2019, ATICTS software and support

ATICTS Software Support

Page 2 of 6 Pages renewals was removed from their respective General Services Administration (GSA) Federal Supply Schedule (FSS) contract vehicle. Currently ATICTS software support in not available on any Government contract vehicle therefore, the renewal of support will be completed as an open market procurement.

The period of performance for this requirement is estimated to be May 1, 2024, through April 30, 2025. The total estimated life-cycle value , and Fiscal Year 2024, Army Working Capital Funds have been provided via Military Interdepartmental Purchase Request MIPR4EDAT5A015. The applicable North American Industry Classification System code is 513210, Software Publishers, with a sales size standard of .

3. DESCRIPTION OF SUPPLIES/SERVICES:

This effort is to procure brand-name software support for the ATICTS software currently deployed within Army datacenters and depots worldwide. This support includes access to an ATICTS technician that can provide 24x7 remote support for ATICTS software. Additionally, this support will ensure the Logistics Management Program (LMP) and the Army receives critical version upgrades and security patching, which will ensure the software maintains its compatibility and operational integrity with the existing architecture.

The existing ATICTS software provides real-time views of calibration scheduling, measure and test equipment usage, kitting and reservations features, screening for licensing and qualification to issuer, repair history and cost tracking, weld wire and rod tracking, instant and accurate data entry without keying, graphical user interface, structured query language compliance, and contains multi-level security. Additionally, this software enables the Army to prepare, plan, and execute operations by having the ability to review all Army asset status throughout the world in a moment’s notice.

The Army requires brand-name ATICTS software support to sustain Army depot logistics software systems worldwide. This software support is the only support that can ensure the Army depots remain fully mission capable without interruptions to daily mission, which is critical to supporting the warfighters around the world. Continual support will ensure that the Army and LMP remain in compliance within Information Assurance Vulnerability Alert (IAVA) standards as well as ensuring the software is up to date and compatible within the existing environment.

Only the ATICTS brand-name software support described above can fulfill the Army’s requirement.

4. IDENTIFICATION OF STATUTORY AUTHORITY: Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C. 3204(a)(1) (FAR 6.302-

1/DFARS 206.302-1)

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

ATICTS support is proprietary and available only from the OEM, Data Enterprises of the Northwest, Inc. Data Enterprises of the Northwest, Inc. owns the copyrighted source software, which includes all legal rights, privileges, and ownership contained therein. No other source may legally modify or change the software, nor would they have access to the source code to do so.

ATICTS software is essential to meet the Government’s requirement. ATICTS software is

Page 3 of 6 Pages already integrated into the existing infrastructure, and no other brand-name software can interoperate with that infrastructure, nor could any other brand-meet the requirements or the functionality of the ATICTS software. This software supports the Government’s continuity of operations mission and possess the capability to ensure seamless interoperability. To sustain the current operational software infrastructure, only the identified ATICTS software support will satisfy the requirement. Market research confirmed that, while there are similar products on the market, those products could not be integrated into the Army enterprise without a major cost-prohibitive and time-consuming re-engineering of the LMP and the Army applications, which is beyond the scope of the Government’s need at this time.

To ensure continuity of services and support for the ATICTS software, the ATICTS software support must be renewed. ATICTS software and support is a vital mission essential and is a fully integrated component of the Army’s maintenance depot environment. The Army has a total investment more than in ATICTS software and software support, which would all be lost if required to seek alternative software support. Additionally, another manufacturer’s brand would lack compatibility with the existing software and would result in the software becoming non-compliant with current IAVA requirements, which would force the Army to cease current inventory systems, resulting in displaying improper data, delayed data transmission or failing to report the movement of materials in and out of the depots.

(a) Description of events. This brand-name commercial-off-the-shelf software support is required to allow the Army to continue to meet its missions, including sustaining Army logistics, supply, and repair, maintenance, and replacement tracking software systems worldwide.

(b) Justification.

(1) Proposed sole source contractor. Data Enterprise of the Northwest, Inc. Data Enterprise of the Northwest, Inc. is the OEM and only provides software and support directly to end-users. There are no authorized resellers.

(2) Only the ACTICTS software support described above in Section 3 can satisfy the

Army’s requirement, maintaining compliance with IAVA standards and securely sustaining the existing Army infrastructure for the logistics and supply software systems throughout the world. This procurement is necessary to ensure continuity of operations, integrity, and security sustainment of the existing Army infrastructure and Army depots.

The OEM owns the copyrighted source software with all legal rights, privileges, and ownership control of the software source code. No other source may legally modify or change the software, nor would they have access to the source code to do so.

(3) Discussion regarding cause of the sole source situation. The ATICTS software is integrated into the current infrastructure with the Army having invested more than $ in ATICTS software and support. Only the identified ATICTS software support will satisfy the requirement of sustaining the current software infrastructure.

Only the ATICTS software possesses the capability of seamlessly operating with the currently installed infrastructure and sustaining the Army’s mission. Other brands of software do not meet capability and compatibility requirements. No other brand-name software can seamlessly operate with the currently installed infrastructure, nor meet the

Page 4 of 6 Pages requirements or the functionality of the ATICTS software identified in Section 3. Market research confirmed that no other products compatible with, or that could be seamlessly integrated into the Army enterprise. Replacing the current infrastructure would require re-engineering of the LMP and the Army applications, which is not in the interest of the Government at this time.

Renewal of brand-name ATICTS software support is required to sustain logistics and supply management tools and systems used at Army depos worldwide. Non-compliance with current IAVA mandates would result without this procurement. Automated operations of Army inventory systems would be at a work stoppage without the ATICTS software support of this procurement. The Army needs current accurate data. Improper or delayed capturing of the movement of materials in and out of the depots would jeopardize the Army mission. At this time, the Government has determined that this brand-name software support must be procured to sustain the Army infrastructure. If the brand-name software support is not procured, the flow of critical information for warfighter needs would be jeopardized. The loss of this critical information could endanger the Army’s mission.

6. CONTRACT OPPORTUNITIES ANNOUNCEMENT/POTENTIAL SOURCES:

A combined synopsis/solicitation for this requirement will be published on the SAM.gov website, as required by FAR 5.2. A redacted copy of this J&A will be posted as an attachment to the solicitation.

7. DETERMINATION OF FAIR AND REASONABLE COST:

A determination will be made by the contracting officer that the anticipated cost to the Government is fair and reasonable and that the resulting contract represents the best value to the Government, as defined in FAR 2.101, and results in the lowest overall cost alternative (considering price, special features, and administrative costs) to meet the Government’s needs.

The contracting officer will also determine the pricing information valid for comparative purposes. Prices will be determined fair and reasonable utilizing one or more of the techniques described in FAR 15.404-1. In accordance with FAR 15.403-1, certified cost and price data is not required for this commercial item acquisition.

8. MARKET RESEARCH:

Market research was conducted during the period of December 2023, through March 2024, to determine availability and potential sources for ATICTS support. Market research included reviewing results of recent similar market research performed, and reviewing similar contracts recently awarded for similar or identical requirements via Computer Hardware Enterprise Software and Solutions (CHESS), GSA FSS, and the Department of Defense (DoD) Enterprise Software Initiative (ESI). The market research performed revealed the ATICTS maintenance support is not available via the CHESS, DoD ESI, GSA FSS, or NASA Solutions for Enterprise-Wide Procurement contract vehicles. Brand-name ATICTS software support is only available via the original equipment manufacturer (OEM), Data Enterprises of the Northwest, Incorporated, a small business via open market. Data Enterprises of the Northwest, Incorporated only provides this support directly to the end user and does not have

Page 5 of 6 Pages any resellers authorized to provide the support. Market research supports this requirement meets the definition of a commercial item in accordance with FAR 2.101.

Based on current market research conducted, it has been determined that only the brand-name product support, ATICTS, can fully support the Government’s need. No competitor’s functional replacement products exist in the market currently to meet the Government's need. The Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions, e.g. there are similar products supported in the marketplace that provides the same functionality, the OEM releases ownership rights of product, or it is economically feasible to procure a new system.

9. ANY OTHER SUPPORTING FACTS:

None

10. LISTING OF INTERESTED SOURCES:

Data Enterprises of the Northwest, Incorporated 12819 S.E. 38th Street #22 Bellevue, Washington 98006 Point of Contact: Lisa Peterson Office: 425-688-8805 Email: lisa@aticts.com

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION: (FAR 6.303-

2(b)(11))

a. Lifecycle of the current architecture. The ATICTS software provides for the tooling management system utilized by all primary Organic Industrial Sites (which are government-owned and operated). It integrates with the Logistics Modernization Program (LMP) to facilitate shop floor execution requirements, tool scheduling, and tool accountability. The ATICTS software is currently the only available software that can provide the specific features the Army requires to operate the Army depots data systems worldwide. The Army continually conducts software reviews to determine effectiveness and operational stability to ensure the Government is not only maintaining the most up to date software but also ensuring the best value of the software and software products that make up the tooling management system architecture currently in place.

b. Actions to remove barriers. The Government will continue to conduct market research to ascertain if there are any changes in the marketplace that would enable future actions to be competed without restriction. In the future the Government will determine if evaluation, testing and qualification of alternative products are prudent with respect to prior investment costs, pending end of service dates for existing products, man-power availability, and the total cost to the Government and budgetary allowances. However, until that time, it is anticipated that any additional increase of the existing ATICTS products and support will need to be conducted on a limited source, brand-name basis.