Attachment 3 JA Redacted.pdf

ProCAST SW Licenses – NNSY

CUI

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Controlled By: U.S. Navy Controlled By: MSSD CUI Category: PROCURE Distribution/Dissemination Control: FEDCON POC: tracy.e.goodwin3.civ@us.navy.mil

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: N4215825MP50055 Contract Number: To be determined (TBD) Delivery Order Number: TBD Procurement Title: ProCAST Software Licenses Estimated Value: $278,039 (Base), $286,381 (Option year 1), $564,420 (Total) Statutory and Regulatory Authority: 10 U.S.C. 3204(a)(1) and FAR 6.302-(1)

Upon the basis of the following justification, I, as Amber M. Analla, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of FAR 6.302-(1).

1. REQUIRING AGENCY AND CONTRACTING ACTIVITY:

Requiring Agency:

Norfolk Naval Shipyard 74 Warrington Avenue Portsmouth, Virginia 23709

Contracting Activity:

Defense Information Systems Agency (DISA)/Defense Information Technology Contracting Organization (DITCO)/ PS8321 2300 East Drive Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S): The nature of this action is to procure new upgraded, proprietary, commercial, brand name ProCAST software for Norfolk Naval Shipyard (NNSY). This procurement will be awarded as a firm-fixed-priced open market purchase order to the original equipment manufacturer (OEM), ESI North America, Inc., and sole provider of the required ProCAST software. The estimated cost for this effort is $278,039 for the base period, $286,381 for the option year one, for a total estimated cost of $564,420. Fiscal Year 2025 operation and maintenance, Navy funds are provided on funding document N4215825MP50055. The period of performance is date of award through March 24, 2026, with one option year ending March 24, 2027. The North American Industrial Classification Code is 513210, $47 million size standard, and the Product Service Code is 7A21.

mailto:tracy.e.goodwin3.civ@us.navy.mil

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3. DESCRIPTION OF SUPPLIES/SERVICES: This NNSY requires updated casting simulation software to provide additional features to the already installed ProCAST software. ProCAST is a thermal-fluid casting simulation software that is used by Naval Foundry and Propeller Center (NFPCICN) to design the largest non-ferrous castings in the US Navy. This software performs complex analysis and is used for designing a cast methodology for propeller castings. It allows engineers to perform advanced calculations to assure quality castings and allow the testing of new methodologies which could lead to further process improvements and superior propulsion design. This software allows foundries to evaluate, validate, and optimize their casting processes, enabling them to predict and prevent defects, improve quality and reduce cost. As new propeller castings are manufactured, feedback on casting quality is fed into ProCAST to create new and innovative solutions for future components. Without ProCAST, these redesigns cannot occur. Additionally, ProCAST software allows access to previously run simulations in support of ongoing engineering work. It is currently installed on the NFPCICN network and is imperative to the submarine propeller casting process.

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: .

a. Description of events. ProCAST products are already installed on the NFPCICN network. NFPCICN is the Navy's only organic source for propellers and propulsors.

ProCAST software has been tailored to NFPCICN’s unique alloy requirements for over a decade, yielding very dependable and accurate results, making it the only option for the multi-million-dollar castings products at NFPCICN. The current need is to obtain a software that allows for continuity of operations with advanced features not provided with the currently utilized ProCAST products, and to meet the current and future needs of the Government.

b. Justification.

(1) Minimum Government requirements. ProCAST, which has been utilized for over 10 years, is installed on the NFPCICN network. NFPCICN is the Navy's only organic source for propellers and propulsors. The software must perform complex analysis and be used in designing cast methodology for propeller castings. It must allow engineers to perform advanced calculations to assure quality castings and allows the testing of new methodologies which could lead to further process improvements and superior propulsion design.

(2) Proposed sole source contractor. ESI North America, Inc.

(3) Discussion regarding cause of the sole source situation. ProCAST products are proprietary and exclusively available only from ESI North America, Inc., as they do not allow distributors or resellers to market their products. ESI North America, Inc.

Page 3 of 5 Pages has exclusive rights to distribute all products and services produced or marketed.

Sole source documentation has been provided by the vendor which confirms that ProCAST software is only produced by ESI Group and as such, no other version of this software is available from other agents or dealers.

(4) Impact. The use of any other product would cause significant delay and cost impacts to the propeller and propulsor program at NNSY. Impacts include time and cost to replace the current system, train new employees and expertise that would be lost because of the significant time it takes to train an expert user. The ProCAST software is complex and requires a great deal of training and experience. The duplication of these costs is not expected to be recovered through competition and would cause unacceptable delays in fulfilling the agency’s requirements. The NFPCICN experts stated that the learning curve for expertise with this or any replacement is approximately three years as this product confirms the pour of each roto-casting at an expense of $1,000,000 per casting. Downtime would disrupt planned casting events which are scheduled three years in advance. In addition, this software allows NFPCICN to view history of previously run simulations in support of ongoing engineering work. Without access to these simulations work stoppages are expected as analysis of an issue or required redesigns will be unable to occur.

6. CONTRACT OPPORTUNITIES ANNOUNCEMENT/POTENTIAL SOURCES: Market research determined that this is a sole source procurement only available from the OEM, ESI North America, Inc. A notice was published as required by FAR subpart 5.2 through SAM.gov, from March 28, 2025, through April 4, 2025. No responses were received that would indicate other products can meet the current needs of the Government at this time.

7. DETERMINATION OF FAIR AND REASONABLE COST: A cost or price evaluation will be completed to determine that the anticipated cost to the Government will be fair and reasonable is required in accordance with evaluation criteria established for each requirement. This will be accomplished through comparison of proposed costs or prices with costs or prices for similar supplies, commercial pricing and the independent Government cost estimate.

8. MARKET RESEARCH: Market research was conducted in February 2025, and included reviewing existing Government-wide acquisition contracts, contacting knowledgeable persons in the Government and industry, and determining potential sources. The Government reviewed Department of Defense (DoD) Enterprise Software Initiative (ESI) Blanket Purchase Agreement (BPA), Department of the Navy (DoN) Enterprise Software Licensing (ESL), General Services Administration (GSA) Advantage, and National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V and the open market. The required software is not available on any DoD ESI BPA, DoN ESL, GSA, or NASA SEWP V contract vehicle. Market research confirmed that the required ProCAST software licenses and support are available only through the OEM, ESI North American via the Open Market.

Based on current market research, it has been determined only the aforementioned ProCAST software provided by ESI North America, Inc., can fully meet the Government’s need. This requirement is for proprietary products and/or product support and no competitor functional

Page 4 of 5 Pages replacement products exist in the market at this time 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, i.e., there are similar products and/or product support in the marketplace that provides the same functionality, the original equipment manufacturer releases ownership rights of the product, or it is economically feasible to procure a new system.

9. ANY OTHER SUPPORTING FACTS: None.

10. LISTING OF INTERESTED SOURCES: None. No responses were received that would indicate other products can meet the current needs of the Government at this time.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History. Annual brand name ProCAST software support.

Awardee Name and CAGE code: ESI North America, Inc. (CAGE 3EL43) Purchase Order # HC102823P0034 Small business socioeconomic categories of the awardee: Large Business NAICS code and size standard: 513210 and $47 million sales Contract type: Firm fixed price, open market, sole source, Support Period: April 15, 2023, through March 14, 2024, with one option year from March 15, 2024, through March 14, 2025 Total Contract Value: $268,574.00 Subcontracting History: None

(b) At this time, only ESI North America, Inc., can provide the required ProCAST software.

The Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions and to ensure that the future acquisition strategy matches the market conditions. The Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions and to ensure that the future acquisition strategy matches the market conditions.

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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Krystal Wood SIGNATURE/DATE: See separate signature page

TITLE/ORGANIZATION: IT Specialist, Norfolk Naval Shipyard

PHONE: 757-396-1258

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Tracy Goodwin SIGNATURE/DATE: See separate signature page

TITLE/ORGANIZATION: Management Analyst, NMMES - NAVSEA 03D3

PHONE: 207-703-4242

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

NAME: Amber M. Analla SIGNATURE/DATE:

TITLE/ORGANIZATION: Contracting Officer/DISA/DITCO/PS8321

PHONE: 667-890-0759

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Betty A. Burris, Contract Specialist, betty.a.burris4.civ@mail.mil, (667) 890-1641 and Amber M. Analla, Contracting Officer, amber.m.analla.civ@mail.mil, (667) 890-0759.