N3904016MP60059_JA-Redacted.pdf

J&A – Siemens PLM Software Support

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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, FAR Subpart 13.501, and FAR Part 15

Purchase Request Number: N3904016MP60059 Contract Number: To be determined (TBD) Task/Delivery Order Number: TBD Procurement Title: Siemens Product Lifecycle Management (PLM) software support Contracting Office: Defense Information Systems Agency (DISA) / Defense Information Technology Contracting Organization (DITCO) / PL8321 Estimated Value:

Statutory Authority: Section 4202 of the Clinger-Cohen Act of 1996, FAR 13.501, and FAR 6.302-1

JUSTIFICATION FOR OTFAOC

Justification for OTFAOC Number: N/A

Upon the basis of the following justification, I, as the Contracting Officer, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of Section 4202 of the Clinger-Cohen Act of 1996.. The regulatory authorities that apply to this requirement are FAR 13.501, Test Program for Certain Commercial Items and FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency:

Management Systems Support Division (MSSD) Building 170, 6th Floor Portsmouth, New Hampshire 03804

b. Contracting Office:

DISA/DITCO-Scott/PL8321 2300 East Drive Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this action is to procure commercial off-the-shelf, brand-name, Siemens PLM software support for the Naval Shipyards. This firm fixed priced (FFP) procurement will perpetuate existing coverage which expires December 31, 2015. There are at least two small businesses that can fulfill this requirement. Therefore, this procurement will be set aside and competed amongst Siemens PLM Software Incorporated (Inc.), the original equipment manufacturers (OEM’s), small business resellers.

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b. The period of performance (PoP) is from date of award through December 31, 2016.

Fiscal Year 2016 Operations and Maintenance funds have been provided on Military Interdepartmental Purchase Request number N3904016MP60059.

. The applicable North American Industry Classification System (NAICS) code is 541519, Other Computer Related Services, with sales size standard of $27,500,000.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The Naval Shipyards require software support renewal for the Siemens PLM software suite which consists of NX and Solid Edge software. Renewal of the Siemens software support provides continued technical support for the Siemens infrastructure operations, as well as assuring future software upgrades. The NX software is an integrated and comprehensive family of product engineering solutions that provides the naval shipyards with the ability to digitally create and capture three dimensional product definitions. It allows the shipyards to create solid models, as well as tooling and fixturing, and create toolpaths that enable Computer Numerical Machines to manufacture ships’ parts. The Solid Edge software is a computer aided design (CAD) application that the shipyards use for solid modeling of mechanical design, drawing generation, and creating models for Finite Element Analysis, Rapid Prototype Manufacturing, and Computer Aided Manufacturing. The required software support for these software products will provide continued technical support regarding software operations as well as assuring future version upgrades.

NX is used by Codes 200 & 900 and is accessed through Terminal Server and on S&T seats.

Maintenance renewal for NX is covered under the CAD 2 contract which is managed by MSSD.

NX is an integrated and comprehensive family of product engineering solutions that enable the user to digitally create and capture 3D product definitions. It is used by manufacturers to perform conceptual, industrial and detailed mechanical design along with engineering simulation and digital manufacturing. NX process wizards use knowledge-driven-automation (KDA) to combine captured workflow and best-practices to automate engineering and manufacturing processes such as injection mold design, die engineering and composites design. This software application is used to create solid models, create tooling and fixturing, and create toolpaths that enable Computer Numerical Machines to manufacture ship's parts.

Solid Edge is a Computer Aided Design (CAD) application developed by SIEMENS Corporation used for solid modeling of mechanical design, drawing generation and creation of models for Finite Element Analysis (FEA), Rapid Prototyping Manufacturing (RPM), and Computer Aided Manufacturing (CAM). Additionally, the Solid Edge is used to generate 2D/3D CAD drawings of solid models, assemblies, wire frame models, as well as operate sheet metal and forming CAM machines, to model and develop sheet metal flat patterns and tool designs. The shops produce CAD format files suitable for CAM manufacture of critical parts and structural components used in the overhaul of submarines and in support of the Fleet.

In addition, this solution provides the Navy the ability to manufacture parts and components as well as maintenance engineering, including configuration identification and control, reliability monitoring, and modification control. This software is used in the business process to ensure ships have a source of newly manufactured parts and components to replace or repair, worn, Page 3 of 10 Pages broken, or corroded parts that are not available anywhere at this time due to the aging fleet. This is essential to the business process.

b. An overview of the part numbers, descriptions, and quantities is found in the below table.

NORFOLK NAVAL SHIPYARD

POP: to 12/31/2016

P/N DESCRIPTION QTY

INSTALL: 1009379

UG10000-WISD-M NX S/W and Doc Media Site SE-Windows 1 UG10770-M NX Manufacturing Bundle 10 UG1210-M NX Turning 1 UG11216-M NX Post Builder 1 UG11275-M NX Nurbs Path Generator 3 UG12210-M NX Open C and C++ Runtime 1 UG2070-M NX Rapid Prototyping 1

INSTALL: 1018276

TG30002C-M Learning Advantage NX Membership Cast 3 NX30431-M NX Wire EDM Add-On 1 UG10000-WISD-M NX S/W and Doc Media Site Set - Windows 1 UG10765-M NX Advanced Designer Bundle 9 UG10770-M NX Manufacturing Bundle 4 UG11210-M NX Turning 5 UG11216-M NX Post Builder 1

INSTALL: 1212025

SE320TC-M

Solid Edge Classic-Floating (Unique Host ID Method)

PEARL HARBOR NAVAL SHIPYARD

POP: to 12/31/2016

INSTALL: 1016379

TG30002C-M Learning Advantage NX Membership Cast 13 NX30111-M NX Advanced Sheet Metal 5 UG10000-WISD-M NX S/W and Doc Media Site Set-Windows 1 UG10660-M NX Render 1 UG10765-M NX Advanced Designer Bundle 9 UG10770-M NX Manufacturing Bundle 4 UG11031-M NX Motion Simulation 1 UG11210-M NX Turning 2 UG11216-M NX Post Builder 1 UG11430-M NX Sheet Metal 5 UG12210-M NX Open C and C++ Runtime 4

INSTALL: 1373973

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SE320TC-M

Solid Edge Classic Floating (Unique Host ID Method)

INSTALL: 1394605

E002-M FEMAP (Node Locked) 1 E500-M NX Nastran Upgrade for FEMAP (Node Locked) 1

PORTSMOUTH NAVAL SHIPYARD

POP: to 12/31/2016

INSTALL: 1018375

UG10765-M NX Advanced Designer Bundle 2

INSTALL: 1020567

NX30111-M NX AdvacedMetal Design 3 TG30000-M Learning Advantage 7 UG10000-WISD-M NX S/W and Doc Media Site Set-Windows 1 UG10770-M NX Manufacturing Bundle 6 UG11430-M NX Sheet Metal 3 UG12210-M NX Open C and C++ Runtime 6

INSTALL: 1024842

NX21001-M NX License Borrow Option 1 NX30431-M NX Wire EDM Add-On 1 UG10000-WISD-M NX S/W and Doc Media Site Set-Windows 3 UG10100-M NX Gateway 2 UG10765-M NX Advanced Designer Bundle 2 UG10770-M NX Manufacturing Bundle 3 UG11210-M NX Turning 3 UG11216-M NX Post Builder 2 UG12210-M NX Open C and C++ Runtime 3 NX13430-M NX Total Machining - Maintenance 3

PORTSMOUTH NAVAL SHIPYARD

INSTALL: 1356639

SE320TC-M Solid Edge Classic-Floating (Unique Host ID Method) - Annual Maintenance POP: to 12/31/2016

SE320TC-M Solid Edge Classic-Floating-Annual Maintenance POP: 3/26/16- 12/31/16

SE320TC-M Solid Edge Classic-Floating-Annual Maintenance POP: 7/30/16- 12/31/16

PUGET SOUND NAVAL SHIPYARD

POP: to 12/21/2016

INSTALL: 1107107

A724-M Imageware Polygon Modeling 1 A738-M Imageware Evaluation 1 A740-M Imageware Surfacing 1 A742-M Imageware Point Processing 1

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A743-M Imageware Inspection 1

INSTALL: 1011107

TG30002C-M Learning Advantage NX Membership Cast 1 UG10000-WISD-M NX S/W and Doc Media Site Set-Windows 1 UG10660-M NX Render 1 UG10665-M NX Visualize Shape 1 UG10765-M NX Advanced Designer Bundle 5 UG12210-M NX Open C and C++ Runtime 3 UG12270-M NX Open Automation Studio Bundle 1 UG12250-M NX Open Runtime Package 1

INSTALL: 1109035

A724-M Imageware Polygon Modeling 1 A738-M Imageware Evaluation 1 A740-M Imageware Surfacing 1 A742-M Imageware Point Processing 1

INSTALL: 1005751

SE290-M Solid Edge Classic-Floating 74

SE306-M Solid Edge XpressRoute Floating 3

SE361-M Solid Edge Wire Harness Design Floating 3

INSTALL: 1000397

SE290-M Solid Edge Classic-Floating 1

INSTALL: 1289016

SE290-M Solid Edge Classic-Floating 7

SE306-M Solid Edge XpressRoute Floating 3

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source and no other supplies or services will satisfy agency requirements and Section 4202 of the Clinger-Cohen Act of 1996 and FAR 6.302-1/Defense FAR Supplement 206.302-1.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of Events. This acquisition requires the brand-name sustainment of the perpetual Siemen’s software support. In order to sustain the current capabilities and configuration, only the identified Siemens’ software support will satisfy the requirement and function with the current Siemens’ infrastructure. To move away from a Siemens’ infrastructure is cost prohibitive. The government has substantial investment in Siemen’s infrastructure and to duplicate another functional replacement through full and open competition is not in the best interest of the government at this time.

b. Justification.

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(1) Minimum Government requirements. As reflected in 3.b. above, the minimum government requirement is for Siemens’ software support for Solid Edge and NX.

(2) Proposed sole source contractor. This is a brand-name, limited competition amongst Siemens’ resellers. Furthermore, market research has identified that there are at least two small businesses, who can provide the required software support under

NAICS 541519.

(3) Discussion regarding cause of the sole source situation. Only Siemens PLM Software, Inc. or their authorized resellers will satisfy this requirement, as the software and support are proprietary products of Siemens. Siemens PLM Software, Inc. owns the copyrighted source software with all legal rights, privileges, and ownership contained therein. No other source may legally modify or change the software, nor would they have access to the source code to do so. Additionally, no other contractor or distributor can make duplicate copies because copyright and patent laws protect this Siemens software.

(4) Demonstration of unique source. As referenced above, the required Siemens software is proprietary and manufactured by Siemens PLM Software, Inc. Only Siemens or their authorized resellers will be able to satisfy the program’s requirement for the software and support. No other contractor or distributor can legally obtain access to the software, nor can they make duplicate copies since copyright and patent laws protect it.

(5) Procurement discussion. For this follow-on contract for the continued support for the Siemens software, award to any other source than Siemens or their authorized resellers would result in substantial duplication of cost that is not expected to be gained through competition and unacceptable delays in fulfilling the agency’s requirements. The Navy has already invested substantial man-hours and technical support resources to develop the current environment that relies on the Siemens products. Since 2012, Navy has invested in Siemens software licenses and support, and on post processors that are specific to NX, not including the man-hours in research, development and training. Considering the amount of resources and investment that has been made in the Siemens infrastructure, it is neither realistic nor advantageous to replace the current software at this time.

(6) Impact. Siemens PLM software support has been approved by the Department of Navy Application and Database Management System (DADMS) and is required to be utilized in the Navy Shipyards. If this requirement is not awarded, the computer aided design production will halt, and all Siemens software and licenses would be removed at the Naval Shipyards. This would compromise the Navy’s operation to support the Fleets and warfighters; as the computer aided design production provides the naval shipyards with the ability to digitally create products required to replace and repair ship parts as needed.

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Additionally, the Navy has a substantial investment in this infrastructure. If the Navy were to purchase another product to replace the existing infrastructure, it would cost hundreds of thousands in additional dollars as well as a substantial amount of additional man-hours, which would result in sunken cost and lost man-hours to rebuild the infrastructure to support new software. Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency’s requirements.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

A combined synopsis/solicitation for this requirement will be published on the Federal Business Opportunities (FedBizOpps) website, as required by FAR 5.2. All small business authorized reseller are able to submit a quote in response to the solicitation. A redacted copy of this brand-name J&A will be posted to FedBizOpps, as well.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The Contracting Officer will make a determination that the anticipated cost to the Government is fair and reasonable based on comparison of the quotes received, a comparison to the Independent Government Cost Estimate, and commercial price lists.

8. MARKET RESEARCH:

a. Navy team conducted market research for the Siemens requirement in September 2015.

The team surveyed the market through internet research, internal discussions, and vendor meetings.

b. Market research revealed that Siemens software support is only available through the OEM and its authorized resellers. Market research revealed the Siemens software support is not available through a Department of Defense Enterprise Software Initiative Blanket Purchase Agreement, a General Services Administration Federal Supply Schedule or on the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V government-wide acquisition contract. It was found that this software is only available through the open market with at least two authorized small business resellers.

Therefore, this will be a small business set-aside on the open market.

c. Based on current market research, it has been determined that only the aforementioned brand name product and/or product support, Siemens, can fully support the government’s need.

This requirement is for proprietary products and/or product support, and no competitor functional 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 market place that would enable future competitive actions; i.e., there are similar products and/or product support in the marketplace that provide the same functionality, the OEM releases ownership rights of product, or it is economically feasible to procure a new system.

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9. ANY OTHER SUPPORTING FACTS:

None

10. LISTING OF INTERESTED SOURCES: A synopsis for these actions will be published on the FedBisOpps website as required per the FAR. The synopsis will identify the government’s minimum mandatory requirements and the small set-aside. To date, only the named contractors below are interested small business authorized Siemens resellers. However, any responses to the FBO announcement will be considered by DISA prior to proceeding with an award.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

Siemens’ small business authorized resellers can provide the required software support for this requirement. If Siemens elects to surrender their legal ownership, copyright, and/or intellectual property software rights and move toward a complete open source solution, then the Department of Navy will seek open competition for Siemens support.

Regardless, the government will continue to search the marketplace to determine if alternative solutions exist. If the government should determine that Siemens or its authorized resellers are no longer required, the government will seek competition for the required functionality.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

In accordance with the exceptions under DISA Acquisition Regulation Supplement 7.103 (S- 91)(h), an AP is not required.

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ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Contracting Specialist, Kelsie Netemeyer, 618-229-9442, kelsie.l.netemeyer.civ@mail.mil .

mailto:kelsie.l.netemeyer.civ@mail.mil