B8 - Redacted Sole Source Justification.pdf

MEMORANDUM

Subj: SOLE SOURCE FOR LANDING CRAFT UTILITY (LCU) SHIP TO SHORE

CONECTOR (SSC) ASSAULT CRAFT UNITS (ACU) ELECTRONIC PRECISE

INTEGRATED NAVIGATION SYSTEM (ECPINS®) OPERATOR TRAINING

1. 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).

2. 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 ECPINS® operator training for the ACU-1 / ACU 5 and ACU-2 / ACU 4, LCU operators.

3. A description of the supplies or services required to meet the agency’s needs.

The purchase is to acquire the following:

Operator Training Class Estimated Schedule

ECPINS® (LCU) Operator Training for ACU-1 / ACU-5 in San Diego, CA - Operator Training Course (5 Days)

08 – 12 April 2024

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 will be provided within forty-five days after award of purchase order.

This contract will be funded with fiscal year 2024 Operation and Maintenance Navy (OM&N) funds.

4. 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).

ECPINS is the electronic charting system selected by PMS 317 for the SSC and LCU platforms.

The software has received a cybersecurity authority to operate (ATO) and has been integrated in the electronics systems of these platforms. PMS 317 approved the purchase of a program wide license to reduce the total long term prices to procure licenses for future SSC and LCU 1700 class craft under construction. OSI is the original equipment manufacturer (OEM) of ECPINS.

The ECPINS software is proprietary to OSI and they are the only responsible source for the software. ECPINS has been selected by the LCAC 100 integrator as the Navigation Software in the LCAC C4N navigation system. In FY24, a separate FFP contract was awarded to OSI for a program wide level license of ECPINS software. It would not be cost effective to replace the LCAC 100 navigation system baseline as it would require a change to the LCAC 100 SSC production contract and would impact successful completion of acquisition milestones for the program in FY24and beyond.

As the sole responsible source and licensed distributor of the ECPINS software and training, OSI is the only company with the in-house resident knowledge to accurately prepare and perform the ECPINS training. The assessment and measurement aspects of ECPINS training, consulting, and any related material, is wholly owned by OSI and is not distributed through or provided by anyone but OSI. Because of the uniqueness of NSWC PCD needs, OSI is the only approved supplier of the training materials used in conjunction with its licensed programs for the ECPINS Software.

The Government has sole sourced acquisitions to this business entity for the same or similar training sessions. Most recently, the Government awarded purchase order N61331-23-P-0136 and N61331-21-P-0207 on a sole source basis to OSI using simplified acquisition procedures (SAP) without any other sources emerging or expressing interest. As such, OSI is the only entity that can provide these services meeting the Government’s minimum needs. The alternative of replacing the aforementioned navigational platform on the entire fleet, would still require user training in short and long term periods. The time to develop and procure a commercially modified replacement for the ECPINS charting system that meets the operational capabilities of the SSC and LCU programs would require an estimated forty-eight (48) months to complete. It is estimated that it will take approximately $20,000,000 in engineering, testing, and certification to get the alternate software to meet the fielded baseline. This negatively affects the aforementioned production timelines and adversely affects several SSC and LCU interfaces. The expected impact on schedule and cost will prohibit the U.S. Navy to continue ship production as planned because of the critical integration and interface structure of this software. As such, OSI is the only responsible source available to perform these services for the above stated reasons.

5. 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.

6. 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 SAM.GOV website in accordance with FAR

5.2. No additional market research was conducted for the reasons specified in paragraph 4 above.

7. Any other facts supporting the justification.

None

8. 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.