B-Sole Source Memo -Redacted.doc

11 May 2020

MEMORANDUM

Subj: SOLE SOURCE JUSTIFICATION MEMORANDUM TO ACQUIRE ECPINS® SOFTWARE FOR THE LANDING CRAFT AIR CUSHION 100 (LCAC-100) CLASS CRAFT (PURCHASE REQUEST 1300855995-0001)

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., 4585 Canada Way Suite 400 Burnaby, BC, V5G 4L6 , Canada (NCAGE Code: 2C063) to acquire ECPINS® licenses for the LCAC-100 program and an optional training class for the Landing Craft Utility (LCU) operators.

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

The contract effort is to acquire the following:

Base Item Version Number Quantity pgrade 6.1 to 6.2.1 with USB dongle 6.2.1 ECPINS 6.2.1 single seat license 6.2.1 ECPINS Radar HMI craft set (4 licenses)

Option Item Quantity ECPINS® Operator Training for LCU platform

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. All licenses will be delivered no later than eight (8) weeks after award of the order. The training session will be completed by 30 September 2020. The base contract and option action will be funded with Fiscal Year (FY) 2020 Operation and Maintenance Navy (OM&N) 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® has been selected by the LCAC-100 integrator as the Navigation Software in the LCAC C4N navigation system. It is not cost effective to replace the LCAC-100 navigation system baseline as it will require a change to the LCAC-100 production contract and will impact successful completion of acquisition milestones for the program in FY20, FY21 and FY22. The cost of integrating any other brand of similar navigation system capabilities is estimated at $12,000,000.00 over the course of 36 months.

ECPINS® has been selected 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. As the original software developer. They are the only source for the software and training.

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 Beta.SAM.gov website in accordance with FAR 5.2. The synopsis expressed the Government’s intent to contract on a sole source basis. No additional market research was conducted based on the information presented in paragraph 4 above.

Any other facts supporting the justification. None

A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

As stated in paragraph 4 above, OSI Maritime System Ltd. is the only source that can meet the requirement.

Signature page removed.