N4215816MP60172_JA_redacted.pdf

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 Numbers:

Contract Number: To be determined (TBD) Task/Delivery Order Number: TBD Procurement Title: Naval Shipyards New River Kinematics Spatial Analyzer Software Support 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: Not Applicable

Upon the basis of the following justification, I, as Contracting Officer, hereby approve the use of OTFAOC 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 the requirement are FAR Subpart 13.051, 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 Agencies: Norfolk Naval Shipyard

Building 74-2 Portsmouth, Virginia 23709-5000

Pearl Harbor Naval Shipyard 667 Safeguard Street, Suite 100 Pearl Harbor, Hawaii 96860-5033

Portsmouth Naval Shipyard Building 170, 6th floor Portsmouth, New Hampshire 03804-5000

Puget Sound Naval Shipyard 1400 Farragut Avenue Bremerton, Washington 98314-5001

b. Contracting Office: Defense Information Systems Agency (DISA)

Defense Information Technology Contracting Organization (DITCO) 2300 East Drive Scott Air Force Base, Illinois 62225-5406

J&A – Naval Shipyards New River Kinematics Spatial Analyzer Software Support

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2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this action is to renew brand name, commercial off the shelf, New River

Kinematics, Spatial Analyzer Software Support. This procurement will perpetuate existing coverage under contract , which expires August 26, , and will also perpetuate existing coverage for additional software for the Naval Shipyards that was purchased through separate contracts expiring October 29, November 19, , November 20, March 09, and March 28, . This will be a firm fixed price purchase order to New River Kinematics, the original equipment manufacturer (OEM), who has proprietary rights to the New River Kinematics software support and does not have authorized resellers for the New River Kinematics Spatial Analyzer software support.

b. The period of performance (PoP) is for 1-year, estimated to begin August 27, through

August 26, for the Norfolk Naval Shipyard (NNSY) (with exception of software keys 6393 and 7718), the Pearl Harbor Naval Shipyard (PHNSY) (with exception of software keys 7525, 6796, and 6798), Portsmouth Naval Shipyard (PNSY), and Puget Sound Naval Shipyard (PSNSY) (with exception of software keys 7508 and 7511) software support. The PSNSY software keys 7508 and 7511 will have a period of performance of November 30, through August 26, . The PHNSY software keys 6796 and 6798 will have a PoP of November 20, through August 26, and software key 7525 will have a PoP of November 21, through August 26, . The NNSY software key 7718 will have a PoP of March 10, through August 26, and software key 6393 will have a PoP of March 29, through August 26, . The different start dates are required to co-term all software support to end on August 26, for the Naval Shipyards.

c. The total estimated value is . Fiscal Year Operation and Maintenance funds have been provided for this procurement under Military Interdepartmental Purchase Request Numbers

Fiscal Year funding for the optional co-terms CLINs will be provided prior to exercising the options. The applicable North American Industry Classification System code is 511210, Software Publishers with a $38.5 million size standard.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The required New River Kinematic Spatial Analyzer software is currently used at NNSY, PSNSY, PNSY, PHNSY, and all of their satellite activities. This software support is essential to utilize existing Navy Portable Coordinate Measurement Machine (PCMM) devices at NNSY, PSNSY, PNSY, and PHNSY. This support will provide all required software updates, upgrades, fixes, and patches.

b. The Spatial Analyzer software is a traceable metrology 3D graphical software platform that can simultaneously communicate to virtually any number and type of dimensional measurement system. It is utilized by various shops and codes, including structural, machine shop, sheet metal, temporary services and nuclear, and supports existing laser scanners, laser trackers, gage arms, romer arms, total stations and videogrammetry. These systems are utilized for catapult alignment, submarine and surface ship hull work, weapon system inspection, nuclear jobs, manufacturing and overhauling parts for nuclear submarines, and other inspection activities. These activities take place

Page 3 of 9 Pages at the Naval Shipyards and various off-station sites. The Spatial Analyzer software is also used by the Naval Shipyards to operate various measurement tools and to analyze the data obtained and is unique in that it is used to operate Shipyard Production and measurement instruments no matter who manufactured them. The Spatial Analyzer software is the Navy standard for use with portable industrial metrology equipment.

c. A description of the requested products for this renewal is listed below:

Part # Description Quantity POP

NORFOLK NAVAL SHIPYARD

SA PRO EXT SpatialAnalyzer Professional Software

Maintenance Agreement (SMA), 4410-3026 2 27 Aug 2016 to

26 Aug 2017 SA UL+ EXT SpatialAnlayzer Ultimate SMA 2989-2990-

3455-6603 4 27 Aug 2016 to

26 Aug 2017 SA GRP LIC Spatial Analyzer Discount Group License up to 100 users 1 27 Aug 2016 to

26 Aug 2017

SA GRP UL

NTWK

Adds an SA Ultimate Network license to a Discount Group

5 27 Aug 2016 to 26 Aug 2017

SA UL

NTWK

UPGD

SA UL NTWK UPGD upgrades an existing non network license to a network license. Licenses 2989, 2990, 3026, 4410, 6603 Upgrade to Network License

5 27 Aug 2016 to 26 Aug 2017

SA UL+ EXT Optional CLIN- SpatialAnlayzer Ultimate

SMA 6393

1 29 March 2017 to 26 Aug 2017

SA UL+ EXT Optional CLIN- SpatialAnlayzer Ultimate

SMA 7718

1 8 Feb 2017 to 26 Aug 2017

SA UL

NTWK

UPGD

Optional CLIN- SA UL NTWK UPGD upgrades an existing non network license to a network license. Licenses 6393 and 7718 Upgrade to Network License.

2 10 Mar 2017 to 26 Aug 2017 and 29 March 2017 to 26 Aug 2017

PEARL HARBOR NAVAL SHIPYARD

SA UL+ EXT SpatialAnlayzer Ultimate SMA 2147, 2162, 3554, 6604, 6605, 6606, 6795 7 27 Aug 2016 to

26 Aug 2017 SA UL EXT Optional CLIN- 7525 1 21 Nov 2016 to

26 Aug 2017 SA UL EXT Optional CLIN-6796, 6798 2 20 Nov 2016 to

26 Aug 2017

PORTSMOUTH NAVAL SHIPYARD

SA UL+ EXT SpatialAnlayzer Ultimate SMA 1657, 2240, 7593, 3596, 3740, 4185, 4186, 4187, 5997, 10 27 Aug 2016 to 26 Aug 2017

SA UL+ EXT SpatialAnlayzer Ultimate SMA 7352, 7353 2 31 Aug 2016 to 26 Aug 2017

PUGET SOUND NAVAL SHIPYARD

SA UL+ EXT SpatialAnlayzer Ultimate SMA 1675, 2111, 2481, 2566, 4207 ,4759, 4761, 5114, 5522, 14 27 Aug 2016 - 26

Aug 2017

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5523, 5568, 5908, 6757, 6758 SA UL+ EXT SpatialAnlayzer Ultimate SMA 6144

Reinstatement Fee 1 N/A

SA UL+ EXT SpatialAnlayzer Ultimate SMA 6144 to 8/26/2017

1 27 Aug 2016 - 26 Aug 2017

SA UL UPGD Upgrade 2687 from SA Basic to SA Ultimate (requires SA UL EXT, next item)

1 27 Aug 2016 - 26 Aug 2017

SA UL+ EXT SpatialAnlayzer Ultimate SMA 2687 Reinstatement Fee with Term to 08/26/2017

1 27 Aug 2016 - 26 Aug 2017

SA UL + The NEW Ultimate measurement, optimization, analysis, reporting, and automation software suite for all portable instruments

1 27 Aug 2016 - 26 Aug 2017

SA UL+ EXT Optional CLIN- SpatialAnlayzer Ultimate

SMA 7508, 7511

2 30 Oct 2016 to 26 Aug 2017

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source and no other supplies or services will satisfy agency requirements, 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. New River Kinematics Spatial Analyzer software have been fully implemented, including design, creation, configuration, testing, training, and migration of the operational set of users into the Naval Shipyards infrastructure for over five years. Since then the Department of the Navy (DON) has invested an estimated in Spatial Analyzer licenses and support. Currently the Spatial Analyzer Software is the only authorized software of its kind for use by the Navy under the DON’s Application and Database Management System (DADMS). In addition, it is the only software application within its designated Operational Activity taxonomy area and is the only application that performs the required business or war fighting function.

b. Justification.

(1) Minimum Government requirements. The minimum government requirement is for software support as identified in section 3.c. above.

(2) Proposed sole source contractor. New River Kinematics. New River Kinematics is the OEM of the required, proprietary, Spatial Analyzer software and support and is the only source capable of satisfying the government’s requirement.

(3) Discussion regarding cause of the sole source situation. Only New River Kinematics, the OEM, will satisfy this requirement, as the Spatial Analyzer software is proprietary

Page 5 of 9 Pages and they own the copyrighted source software with all legal rights, privileges, and ownership contained therein. No other contractor or distributor can duplicate the software without violating the copyright and patent laws that protect the New River Kinematics software.

(4) Demonstration of unique source. As referenced above, the Spatial Analyzer software is proprietary to New River Kinematics. Only New River Kinematics will be able to satisfy the requirement for the Spatial Analyzer software support. New River Kinematics does not allow authorized resellers to sell to the government.

(5) Procurement discussion. Naval Shipyards have made a significant investment, in excess of procuring New River Kinematics Spatial Analyzer software, licenses, and continued software support in the past five years. In addition, the Naval Shipyards have invested over in installation, configuration, and training costs. It is necessary to leverage this investment and continue to meet their mission of overhauling Naval Ships and Submarines. Considering the amount of investment the navy has made in the Spatial Analyzer software, it is neither realistic nor advantageous to replace the current software at this time.

(6) Impact. Procuring another software solution would not only result in a loss of the initial investment of , but would also result in significant duplication of costs and unacceptable delays in the fulfilling the agency’s requirements. New procurement costs, testing, installation, and training costs are estimated to be at least

, which does not account for time necessary to address any issues that may arise with legacy data compatibility with any new potential software packages.

The implementation timeline of a new product would take in excess of to production workers needing to implement new software while also managing ongoing Shipyard software support infrastructure. Failure to procure this software support would lead to work stoppages due to shipyards not being able to repair, replace, and maintain parts as needed to overhaul ships and submarines. Costs associated with delays in schedules to nuclear ship/submarine overhauls are estimated at . Procuring a different solution would not be advantageous to the government.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

A sources-sought notice was published by DITCO-Scott to FBO on July 21, , and no responses were received. A notice of the proposed contract action will be synopsized on the FBO website, as required by FAR 5.2, with the intention to award a sole source contract to Compuware Corporation. A copy of the redacted Justification for OTFAOC will be posted with the synopsis.

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 commercial list pricing, previous history, comparison of the negotiated prices, and a comparison of the independent government cost

Page 6 of 9 Pages estimate. A determination will be made that the contract represents the best value to the government and results in the lowest overall cost alternative. DITCO has concluded that placing an order with New River Kinematics represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the government's needs. Certified cost and price data is not required for this commercial item acquisition in accordance with FAR 15.403-1(b)(3).

8. MARKET RESEARCH:

a. Market research was conducted by each of the Naval Shipyards in April to assess their expiring software support contracts and their need to renew the support. The team discussed availability of other potential products with the Navy’s Functional Area Managers for Applications to help determine if any other products were available for use as well as surveying the market through internet research, internal discussions, and vendor meetings. The first step taken in conducting market research in support of this project was to determine if there were other software solutions that would meet the government’s minimum requirements. Initial product research was conducted with websites, vendor brochures, hands-on knowledge of available software, issuing a sources-sought announcement, and determining potential sources.

The viability of a vendor's product was based on the product's ability to fulfill the mission-critical requirements of supporting existing Navy Portable Coordinate Measurement Equipment PCMM devices at NNSY, PSNSY, PNSY, and PHNSY. The market research revealed New River Kinematics is the only source that will satisfy the agency’s requirements for Spatial Analyzer software and support.

b. Market research determined the required; Spatial Analyzer software support is not available on any current Department of Defense Enterprise Software Initiative Blanket Purchase Agreement, National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement, or General Services Administration Schedule contract. It is recommended that this requirement be awarded via open market to New River Kinematics, a small business, the only known source of the required Spatial Analyzer software and support.

9. ANY OTHER SUPPORTING FACTS:

None.

10. LISTING OF INTERESTED SOURCES:

New River Kinematics, Inc.

436 McLaws Circle Williamsburg, Virginia 23185-5675

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History.

Contract Number:

Contractor: New River Kinematics Inc.

Period of Performance:

Lifecycle Amount:

Competition Status of Procurement: Sole source procurement to New River Kinematics, Inc.

Description of Procurement: Spatial Analyzer Software and Support

Period of Performance:

Lifecycle Amount:

Competition Status of Procurement: Sole source procurement to New River

Period of Performance:

Lifecycle Amount:

Competition Status of Procurement: Sole source procurement to New River

Period of Performance:

Lifecycle Amount:

Competition Status of Procurement: Sole source procurement to New River

Period of Performance:

Lifecycle Amount:

Competition Status of Procurement: Sole source procurement to New River

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Period of Performance:

Lifecycle Amount:

Competition Status of Procurement: Sole source procurement to New River

Period of Performance:

Lifecycle Amount:

Competition Status of Procurement: Sole source procurement to New River

Period of Performance:

Lifecycle Amount:

Competition Status of Procurement: Sole source procurement to New River

Period of Performance:

Lifecycle Amount:

Competition Status of Procurement: Sole source procurement to New River

(b) If New River Kinematics elects to surrender their legal ownership, copyright, and/or intellectual property software rights and move toward a complete open source solution, then DISA will seek open competition. Regardless, the government will continue to search the marketplace. If the government should determine that the OEM is no longer required, the government will seek competition for the required functionality. Soliciting a quote for the purchase of brand name, New River Kinematics, software and support on the Open Market is currently the only way to procure the required products.

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

A written AP is not required for this action as it does not meet the threshold for an AP.