B - Redacted Sole Source Justification.doc

Subj: SOLE SOURCE JUSTIFICATION MEMORANDUM FOR LANDING CRAFT UTILITY (LCU) ASSAULT CRAFT UNITS (ACU) ELECTRONIC PRECISE INTEGRATED NAVIGATION SYSTEM (ECPINS®) VIRTUAL OPERATOR TRAINING

Identification of the agency and the contracting activity, and specific identification of the document as a “Limited Source Justification.”

This is a sole source justification. Contracting activity is the Naval Sea Systems Command, Naval Surface Warfare Center, Panama City Division (NSWC PCD), 110 Vernon Avenue, Panama City, FL 32407-7001 (Contracts Department Code 02).

Nature and/or description of the action being approved.

This action will award a firm fixed price purchase order, on a sole source basis, to OSI Maritime Systems Ltd (NCAGE Code: 2C063), 4585 Canada Way Suite 400, Burnaby, BC, V5G 4L6 to acquire Virtual ECPINS® operator training for the ACU-1 and ACU-2 LCU operators.

A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The purchase is to acquire the following:

Base Virtual Training Class Estimated Schedule ECPINS® Operator Training for ACU-2 in Virginia Beach, VA.

Operator Training Course (5 Days)

FY21 Quarter 4 ECPINS® Operator Training for ACU-1 in San Diego, CA Operator Training Course (5 Days)

FY21 Quarter 4

The order will contain options as follows:

Option 1 - Fiscal Year 2022 Training Class Estimated Schedule ECPINS® Operator and Maintenance Training for ACU-2 in Virginia Beach, VA.

Operator Training Course (5 Days)

Maintainer Training Course (5 Days) FY22 Quarter 1 ECPINS® Operator and Maintenance Training for ACU-1 in San Diego, CA.

FY22 Quarter 2 ECPINS® Operator Training for ACU-2 in Virginia Beach, VA.

Operator Training Course (5 Days)

FY22 Quarter 3 ECPINS® Operator Training for ACU-2 in San Diego, CA.

Operator Training Course (5 Days)

FY22 Quarter 4

Option 2 - Fiscal Year 2023

Training Class Estimated Schedule ECPINS® Operator and Maintenance Training for ACU-2 in Virginia Beach, VA.

Operator Training Course (5 Days)

Maintainer Training Course (5 Days) FY23 Quarter 1 ECPINS® Operator and Maintenance Training for NBU-7 in Sasebo, Japan.

Operator Training Course (5 Days)

Maintainer Training Course (5 Days) FY23 Quarter 1 ECPINS® Operator and Maintenance Training for ACU-1 in San Diego, CA.

FY23 Quarter 2 ECPINS® Operator Training for NBU-7 in Sasebo, Japan. Operator Training Course (5 Days) FY23 Quarter 2/3 ECPINS® Operator Training for ACU-2 in Virginia Beach, VA.

Operator Training Course (5 Days)

FY23 Quarter 3 ECPINS® Operator Training for ACU-2 in San Diego, CA.

Operator Training Course (5 Days)

FY23 Quarter 4

Option 3 - Fiscal Year 2024

Estimated Schedule ECPINS® Operator and Maintenance Training for ACU-2 in Virginia Beach, VA.

Operator Training Course (5 Days)

Maintainer Training Course (5 Days) FY24 Quarter 1 ECPINS® Operator and Maintenance Training for NBU-7 in Sasebo, Japan.

Operator Training Course (5 Days)

Maintainer Training Course (5 Days) FY24 Quarter 1 ECPINS® Operator and Maintenance Training for ACU-1 in San Diego, CA.

FY24 Quarter 2 ECPINS® Operator Training for NBU-7 in Sasebo, Japan. Operator Training Course (5 Days) FY24 Quarter 2/3 ECPINS® Operator Training for ACU-2 in Virginia Beach, VA.

Operator Training Course (5 Days)

FY24 Quarter 3 ECPINS® Operator Training for ACU-2 in San Diego, CA.

Operator Training Course (5 Days)

FY24 Quarter 4

Option 4 – FY 2025

Estimated Schedule ECPINS® Operator and Maintenance Training for ACU-2 in Virginia Beach, VA.

Operator Training Course (5 Days)

Maintainer Training Course (5 Days) FY25 Quarter 1 ECPINS® Operator and Maintenance Training for NBU-7 in Sasebo, Japan.

Operator Training Course (5 Days)

Maintainer Training Course (5 Days) FY25 Quarter 1 ECPINS® Operator and Maintenance Training for ACU-1 in San Diego, CA.

FY25 Quarter 2 ECPINS® Operator Training for NBU-7 in Sasebo, Japan. Operator Training Course (5 Days) FY25 Quarter 2/3 ECPINS® Operator Training for ACU-2 in Virginia Beach, VA.

Operator Training Course (5 Days)

FY25 Quarter 3 ECPINS® Operator Training for ACU-2 in San Diego, CA.

Operator Training Course (5 Days)

FY25 Quarter 4 The Government’s minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. This acquisition will be conducted using simplified acquisition procedures with a total dollar value above micro-purchase levels, but not exceeding the simplified acquisition threshold of $250,000.00. Training for the base period will be completed by 30 September 2021. Optional training shall be completed by 30 September of the fiscal year in which the option is exercised. The base period will be funded with Fiscal Year (FY) 2021 Operation and Maintenance Navy (OM&N) funds. Options will be funded with FY 22 – 25 O&MN funds.

Identification of the justification rationale as only one source is capable of providing the supplies or services at the level of quality required because these are unique and highly specialized.

10 U.S.C. 2304(c) (1) - Only one responsible source and no other supplies or services will satisfy agency requirements, FAR 6.302-1(a)(2).

OSI Maritime Systems Inc. is the only responsible source capable of providing licenses. This purchase is not suitable for full and open competition and it is in the best interest of the Government to acquire this item using a non-competitive purchase for the following reasons: ECPINS® was selected as the navigation system for the LCU program by PMS377. The cost of integrating any other brand of similar navigation system capabilities is estimated at $5,000,000.00 over the course of 36 months. The ECPINS® software is proprietary to OSI Maritime Systems Ltd. They are the only source for the software. As the original software developer, OSI is the only source qualified to perform the training. The Government did not purchase the rights to reproduce or modify this software therefore OSI Maritime Systems Ltd. is the only source that can meet this requirement.

A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 13.106-1(b).

The Contracting Officer has determined that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

This requirement will be synopsized via posting on the SAM.GOV website in accordance with FAR 5.2. No additional market research was conducted for the reasons specified in paragraph 4 above.

Any other facts supporting the justification. None