Aquaveo JA_redacted.pdf

Control Number: ERDC-20-2061

U.S. Army Corps of Engineers

Engineer Research and Development Center

(ERDC)

Aquaveo, LLC (Cage code: 4Q6K9)

Award a sole-source Indefinite Delivery, Indefinite Quantity (IDIQ) contract to acquire programming and graphical user interface

(GUI) development services

Justification for Other than Full and Open Competition

Authority: 10 United States Code Section 2304(c)(1) as implemented in Federal Acquisition Regulation 6.302- 1(a)(2)(iii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Estimated Amount:

$5,041,000.00

Justification for Other Than Full and Open Competition

1. Contracting Activity: The ERDC Contracting Office (ECO) located at the U.S. Army Engineer Research and Development Center (ERDC), 3909 Halls Ferry Road, Vicksburg, MS 39180-6199.

2. Description of Action: The U. S. Army Corps of Engineers (USACE), Engineer Research and Development Center (ERDC), Vicksburg, MS, intends to award a follow-on Firm Fixed Price (FFP) Indefinite Delivery, Indefinite Quantity (IDIQ) contract, on a sole source basis, to Aquaveo, LLC (CAGE: 4Q6K9). This action is a follow-on to Contract W912HZ14D0001, a noncompetitive sole-source procurement which was awarded to Aquaveo in 2014 for a five-year period that ended in 2019. This contract seeks to extend the development of the Enterprise Desktop Numerical Modeling Interface (EDMI) that currently consists of three functional components: the Groundwater Modeling System (GMS), the Surface Water Modeling System (SMS), and the Watershed Modeling System (WMS). For convenience in this document, these three separate but related systems are referred to as XMS, the collective name used by the developer for these modeling systems. This contract will be carried out by means of

EDMI components and capabilities. The contract term will have a five year ordering period after the award date. The estimated total amount of the contract is $5,041,000.00. It is anticipated that funding for this action will primarily be derived from Civil Works research funding but may also derive from USACE District project funds. ERDC also provides numerical modeling capabilities found in the XMS to support military research and project mission requirements thus it is possible that funding for this action may also derive from military sources over the five year ordering period.

3. Description of Supplies/Services: The software and services under this contract are vital to USACE, Army, Department of Defense (DoD), and other ERDC sponsors. The Government requires Aquaveo to continue research and development of a software framework to enable pre-and post-processing of numerous ERDC-developed numerical models and associated computational, conceptual, and visualization tools, as well as the maintenance of existing tools used for Operations and Maintenance (O&M) and General Investigation (GI) activities. For example, the Coastal and Hydraulics Laboratory within ERDC recently utilized capabilities with XMS to support the design of major elements of the Coastal Texas Protection and Restoration Study for USACE Galveston District, to provide thousands of numerical simulation results for the South Atlantic Comprehensive Study for the USACE South Atlantic Division, and to enable ship simulation capability for navigation studies at numerous ports across the country. The contract term will be for a period of five years after the award date. The proposed contract will be for an estimated amount of $5,041,000.00.

4. Authority Cited: Pursuant to 10 United States Code Section 2304(c)(1) as implemented in Federal Acquisition Regulation 6.302-1(a)(2)(iii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: The proposed procurement meets the criteria for sole source acquisitions under the authority cited above. This is due to the fact that award of this contract to any other source would result in substantial duplication of costs that would not be recovered requirements.

a) Relevant Background. ERDC has a 25+ year development history with Aquaveo (and its predecessors) to produce XMS, a portion of which was funded by USACE using various contracting mechanisms. XMS consists of three comprehensive modeling systems, GMS, SMS, and WMS, that were partially funded by USACE, while significant other portions of XMS development were funded by private enterprise. The ERDC does not possess the software development expertise in-house to produce complex graphical user interface (GUIs) to match the requirements of the world-class numerical models that it develops. Therefore, a contractual relationship with a software developer, Aquaveo, LLC and its predecessors, was established prior to 1992 to produce the GUI tools that would eventually become the modeling systems that

Brigham Young University, was selected by USACE to produce a graphical user interface because of their expertise in advanced engineering visualization capabilities as evidenced by their position as pioneers in developing commercially available visualization software.

Ultimately, XMS was developed from this relationship. USACE was able to leverage this experience by funding the development of XMS, giving the USACE access to leading visualization tools at a fraction of the development costs had the same tools been developed in-house. By means of various contractual relationships, the ERDC and Aquaveo (or its predecessors) have continued to develop XMS, which Aquaveo now markets commercially.

portion of the overall development costs of XMS, but Aquaveo has also invested significant amounts of their own capital into the development of the interface, a fact that has positively impacted the return on investment for USACE. Critically, however, Aquaveo has developed XMS with its own funds to a level that USACE does not own the commercial rights to XMS.

Over more than 25 years of development to date, dozens of updates and revisions to XMS components have been specified by ERDC and delivered by Aquaveo, resulting in numerous software updates to XMS components that have been and are currently in use in USACE offices across the nation.

In 2013, ERDC, for the first time, funded XMS development through a sole source contract with Aquaveo. ERDC retains government purpose rights to the portions of XMS functionality that were funded by ERDC but these individual capabilities are fully integrated into the XMS software and would be useless in their present form if they were severed from the existing XMS functional components (GMS, SMS, and WMS).

As stated in the justification for the 2013 sole source contract (Control Number ERDC 13-211, attached), that contract included beginning the process of taking the individual capabilities in XMS that were funded by ERDC over the years and separating them into individual, modular software components that can be reassembled into a functional EDMI and that can be accessed and utilized individually without proprietary dependence on the overall XMS system. ERDC will retain government purpose rights over all the ERDC-funded modular components both from past contractual efforts as well as any components developed going forward. This new, more modular EDMI is envisioned to be an open source solution that would allow for full and open competition for future ERDC requirements.

The redesign of the EDMI was estimated to take five years; however, as noted in the justification for the 2013 sole source contract, since there were no known comparable examples in existence, it was unclear exactly how long would be required. Development of an open source EDMI was an ambitious undertaking in 2013 and, once ERDC and Aquaveo began down this path, it quickly became evident that 5 years would be insufficient to fully develop the vision. However, given that a 5-year IDIQ was what had been put in place, as much progress as possible was made based on available funding and specific EDMI development needs over the course of the original

2013 IDIQ.

Significant progress has been made over the course of the 2013 IDIQ in the development of the open source EDMI by making XMS more modular. For example, certain vital functions within XMS can now be executed by external non-XMS tools. Additionally, individual model interfaces within XMS have been undergoing restructuring to become dynamic model interfaces which allow for any software provider to make changes to the interface options for that model, not just Aquaveo. However, the process is far from complete; thus it has been determined that a new IDIQ is required to complete the work that was begun in 2013.

Two laboratories with ERDC, namely the Coastal and Hydraulics Lab (CHL) and the Information Technology Lab (ITL) have been the primary users of the 2013 IDIQ and it is anticipated that these two labs will continue to be the primary users of the proposed new IDIQ.

It should be noted, however, that ITL did pursue an alternate EDMI development path around the same time as the inception of the original 2013 IDIQ with Aquaveo. This effort produced mixed results. ITL has different and more generic model interface requirements than CHL and therefore pursed development of an open-source replacement for XMS that would meet their mission requirements. A separate IDIQ contract for development of an open-source EDMI was awarded to a company called Kitware (Contract W912HZ-15-D-0003, Period of Performance: 20 April various task orders of this contract that are available to and utilized by CHL. However, the specific numerical models in the areas of groundwater, surface water and hydrologic modeling.

given the greater number of years of development and the larger amount of financing expended on XMS development as specified earlier in this section.

It should also be noted that CHL is committed to the path of modular software development (i.e.

the development of adaptable, individualized functional software components independent of a particular software framework), not just for EDMI requirements but for all aspects of numerical technology development, a significant mission for ERDC and CHL. This fact is stated in the recently produced CHL Numerical Technology Modernization Strategy (NTMS), finalized in 2020, that includes this path as a vital part of the development and delivery of CHL numerical technology capabilities to the USACE. In order for CHL to achieve its stated NTMS goals, the process begun with the 2013 IDIQ with Aquaveo needs to continue in order that the full modularization of EDMI tools can be completed by the 5-year goal of the NTMS.

b) Duplication of Cost. As detailed in the preceding Relevant Background section, significant investment has been made into the XMS, not just since 2013 but over the last 25

As the ITL open-source EDMI contract with Kitware experience demonstrated, duplication of all the functionality that is found in XMS is not something that can be easily replicated. If a sole source IDIQ with Aquaveo, LLC is not approved, ERDC would need to start over with a new contract awardee and begin the costly process of duplicating the current existing functionality in a modular, open-source EDMI.

There are comparable geophysical numerical modeling packages available in industry that have tool sets and GUIs similar in many respects to those currently available in XMS. However, these competing packages do not provide interfaces to the already developed ERDC numerical models.

In order for these GUIs to be used, it is estimated that approximately $3,000,000 and at least four years of effort would be required as detailed in the next section. Further, that alternative developed numerical models. In total, an alternative effort would cost, at a minimum, approximately $9 million, and additionally would require 4 years to develop, plus many more years of sequential effort just to get the new set of tools to the current level of XMS capability.

Critically, Aquaveo, LLC retains the proprietary software rights to several key XMS tools, such as the Conceptual Modeling Interface and 3D geologic model builder, on which USACE relies for accomplishment of its missions. It is not practical or feasible at present for all of the portions of XMS that USACE has funded to be individually transplanted to another modeling framework.

rights that they hold to major portions of the code upon which USACE mission requirements depend, Aquaveo alone is qualified to continue development for this requirement.

c) Unacceptable Delays. In addition to the significant duplication of cost impacts noted above, award to a contractor other than Aquaveo, LLC would cause unacceptable delays.

Simply put, were it to pursue open competition, ERDC would, without question, fail to timely deliver on a variety of its missions related to numerical technologies.

A new contractor would require time to develop the capability to replicate current XMS functionality. It is estimated that approximately four years would be required to accomplish this with at least another year before any of the current needs would be fulfilled by the new contractor. This represents a five-year loss of any new capabilities in the XMS which would have a significant negative impact on studies conducted by ERDC and USACE Districts that utilize and depend on new XMS capabilities to meet mission requirements in numerous disciplines within the flood risk management, navigation and environmental restoration business lines.

As noted in the Relevant Background section, significant progress was made toward the modular, open-source EDMI goal from 2013 thru 2019 by use of the previous IDIQ sole source contract. However, funding limitations and technical challenges restricted the amount of progress that was made and a new sole source contract is needed to continue this effort. It is expected that with a new sole source contract, the previously realized progress will not only

NTMS as described in Section 5a. Without a new sole source contract to continue the effort, the past 7 years of progress toward the modular, open-source, next-generation EDMI will be lost, causing unacceptable delays in ERDC meeting its mission requirements.

d) Impact. The time, cost and potential loss of mission described above are unacceptable and would represent a failure by ERDC to accomplish its mission. Over the 25 years of GUI development history, approximately $20M has been invested in XMS, resulting in a highly specialized and industry leading EDMI for geophysical numerical modeling which enables ERDC and its customers across USACE to meet mission requirements. Competent software engineering companies do exist that could re-create what currently exists in XMS (see item 8 Market Research below) but at an estimated duplication cost of over $9M (over 45% of the amount already invested). This course would also cause an unacceptable delay of over five years.

Such a delay would jeopardize many of ERDCs missions. The only fiscally responsible course of action is to pursue another sole source IDIQ follow-on contract with Aquaveo, LLC for a five-year period.

6. Efforts to Obtain Competition: ERDC has been involved in geophysical numerical modeling GUI development for more than 2 decades and has a good understanding of the landscape of GUI development capability that exists in the marketplace today. Market research was conducted by means of Internet searches, one-on-one contacts in the industry at professional conferences and through personal communications as well as discussions with other Federal agencies who contract for GUI development for their numerical models. In accordance with FAR 5.201, a notice to inform industry of the intent to issue a sole source procurement was posted at www.beta.sam on August 12, 2020 with responses due August 21, 2020. No responses were received.

7. Actions to Increase Competition: As mentioned previously, one of the major intentions of this action is to continue the process of adapting and transferring the capabilities of current software in the XMS suite to individual components that can be utilized independently of that framework. This will greatly improve the modularity, adaptability, and accessibility of the software tools used by ERDC. By making the components of this new EDMI modular and open source, any developer will have the ability to adapt and develop tools separately from and without proprietary dependence on the XMS system, thus allowing for full and open competition of any future EDMI capability requirement. Additionally, ERDC will retain government purpose rights over all ERDC-funded modular components both from past contractual efforts as well as any components developed going forward, thus further eliminating barriers to development independence from the current Aquaveo requirement. The progress made in the previous 2013 IDIQ has already demonstrated that capability development for the portions of XMS that have been made modular makes full and open competition for new development requirements possible. With a fully modular EDMI, it is expected that all future capability requirements for competition.

8. Market Research: As part of the market research process, an investigation of hydrographic software similar to the XMS software suite was conducted from December 2 to December 10, 2020 to determine whether other existing software would be sufficient for the needs of the Corps for this action. It was determined that there are a few comparable geophysical numerical modeling packages available in industry that have tool sets and GUIs similar in some or many respects to those currently available in XMS. Some of those with capabilities most closely matching that of the XMS include:

Modeling Package: Delft3D Suite https://www.deltares.nl/en/software/delft3d-4-suite/ Developer:

Deltares Boussinesqweg 1 2629 HV, Delft, The Netherlands

Modeling Package: MIKE Suite https://www.mikepoweredbydhi.com/ Developer:

Danish Hydraulics Institute (DHI) Inc.

141 Union Blvd, Suite 320 Lakewood, CO 80228

Modeling Package: MODFLOW Flex Goundwater https://www.waterloohydrogeologic.com/visual-modflow-flex/ Developer:

Waterloo Hydrogeologic 219 Labrador Dr., Suite 201 Waterloo, Ontario N2K 4M8

Modeling Package: Computational Hydro-Engineering Technology (CHeT) https://www.comphydrotech.com/

However, these competing packages do not provide interfaces for the ERDC-developed numerical models, nor do they in most cases have the full functionality of XMS software currently being employed. The mismatch in capabilities between these modeling packages and XMS is due to the fact that over 25 years of GUI development history and approximately $20M have been invested in XMS, resulting in highly specialized and industry leading EDMI for geophysical numerical modeling. And since the commercial rights of XMS are not fully owned by USACE as described above, it is not practical or feasible for the portions of XMS for which USACE has funded to be individually transported to another modeling framework. Thus, if any of these alternate products or vendors were substituted, significant software development services beyond the intended requirements of this action would be necessary in order to match the capabilities currently available through the XMS suite. With this in mind, typical labor rates associated with software development were investigated. Several sources* estimate that the average hourly pay for a software developer ranges from around $140 to $168. It should be noted that these are average amounts for generic, base-level software and app design, and does not include the higher fees typically associated with the subject matter expertise that is required to develop software for complex hydrodynamic numerical models; hourly fees for the type of software design needed to build a suite with the same capabilities as the XMS could easily reach several hundred dollars. This rate would then be multiplied by the number of software developers employed. One source^ estimates that the minimum cost of development for the type is $250,000. For these reasons, the increase in cost that it would entail to duplicate capabilities already available is judged to be unacceptable and counterproductive. Another factor that precludes the use of an alternate vendor is the time required to develop an alternate modeling framework. It is estimated that such an effort would require years of development, which would capabilities and missions. Therefore, while competent software engineering companies exist that could possibly re-create what currently exists in XMS, it would be at an unacceptably high cost in time and funding, wasting the past invested funding and incurring very long delays in delivery of tools and capabilities required to meet current Corps mission needs.

In summary, in order for GUIs for ERDC-developed models to be created and incorporated in a competing software package, unacceptable high costs and long delivery times would be required, wasting decades of past investment and familiarity with tools and capabilities that the user base within USACE is already familiar. The time and cost for this is unacceptable and will result in failure to meet milestones set forth by the Corps, Army, DoD, and other ERDC sponsors and thus result in likely loss of reimbursable and research funding. It is also likely that functionalities that already exist in XMS, and for which the Corps has already paid, would be duplicated in any new development. This would mean a substantial and unacceptable duplication of cost to the Corps.

There is no existing contract or vehicle that will provide a more advantageous means of obtaining the software development services described. Therefore it is recommended that a new sole-source contract with Aquaveo, LLC be put in place that will allow the ERDC to continue to meet its mission needs with regard to EDMI development for the next five years.

https://www.cleveroad.com/blog/software-development-costs Cost to Design an App in 2020: What Goes into the Cost of Mobile App Design? https://themindstudios.com/blog/cost-to-design-an-app/#whatdoesappdesigncostconsistof;

https://www.scnsoft.com/blog/software-development-costs) ^ (source: "How Much Does Custom Software Cost?" https://soltech.net/how-much-does-custom-software-cost/)

9. Other Facts:

a) Procurement History: Previous procurements were competitively awarded under FAR Subpart 35 Broad Agency Announcement (BAA) authority. The BAA authority is no longer applicable given the nature of the requirements of the contract and the existing relationship between the ERDC and Aquaveo.

(1) Contract Numbers and dates of the last several contracts for these same or similar services: Contract W912HZ14D0001 was awarded noncompetitively to Aquaveo in year 2014 for similar services.

(2) Authority previously cited if less than full and open competition was used:

The authority cited for Contract W912HZ14D0001 was 10 United States Code Section 2304(c)(1) as implemented in Federal Acquisition Regulation 6.302-1(a)(2)(iii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

(3) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results: As specified in paragraph 7 of justification ERDC- 13-211 for Contract W912HZ14D0001, the intention of that procurement was to add new capabilities to XMS and to redesign the EDMI in order to transfer the capabilities of the XMS to be independent from the existing proprietary software framework. A sole source contract was deemed the only appropriate solution based on practical and fiscal concerns.

It was also noted that since there were no comparable existing examples, the amount of time required to complete that effort was uncertain and could exceed the execution period of the procurement. An explanation of the results of the previous procurement is provided in Section 5a, fifth paragraph.

(4) If any prior contract for this requirement was accomplished using full and open competition, include a detailed explanation of the changed circumstances causing this action to now limit the sources: No prior contract for this requirement was accomplished using full and open competition.

(5) An explanation of any unusual patterns that may be revealed by the history, e.g., several consecutive, urgent buys: No unusual patterns of activity occurred during the execution of Contract W912HZ14D0001.

(6) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the procurement and whether there have been any significant changes: The circumstances justifying Contract W912HZ14D0001 were fundamentally the same as those faced by the current see continued development and be transferred to an independent, proprietary-free, software framework as part of the contract action. At the time of procurement, no other software companies had the necessary software or capabilities to execute this contract, and efforts to work with alternate vendors to duplicate capabilities outside of the XMS framework were determined to be too costly and time-consuming to pursue. For those reasons, the decision was made to pursue a sole-source action for Contract W912HZ14D0001. These circumstances have not changed since that procurement and are still applicable to the current acquisition.