Redacted_JA1.pdf

Limited Sources Rationale – Justification and Approval

Subject: Funding number: N0003917MP00555

The following paragraphs are provided, in accordance with (IAW) FAR Part 13.106(b)(1)(i) - the contracting officer may solicit from only one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g. urgency, licensing agreements, brand name or industrial mobilization), to support sole source limited source justification for proposed orders exceeding the micro-purchase threshold, but not exceeding the simplified acquisition threshold.

The purpose of this procurement is to procure brand-name Ariel software and support in support of the Navy Enterprise Resource Planning (ERP) Program Office.

. The period of performance is date of award through June 14, 2018. Fiscal year

2017 operations and maintenance funds were provided under Military Interdepartmental

Purchase Request (MIPR) N0003917MP00555.

The applicable North American Industrial Classification System Code (NAICS) is 541519, Other

Computer Related Services, with a size standard of $27.5 million. This requirement is follow-on to contract number HC1028-16-P-0121, which expired June 14, 2016.

Navy ERP is a 24x7 mission critical business system currently managed by a 600 plus government and contractor support staff which supports 71,650 end users across the Navy supporting multiple Navy commands: Naval Air System Command (NAVAIR), Naval Supply

Systems Command (NAVSUP), Naval Sea Systems Command (NAVSEA), and Space & Naval

Warfare Systems Command (SPAWAR). Navy ERP is considered the Navy’s financial system of record and as such must meet Earned Value Management (EVM) reporting requirements required by the Office of Management and Budget (OMB) Circular A-11 and the Department of

Defense (DoD).

Navy ERP purchases a yearly subscription of the 3E company Environmental, Ecological and

Engineering its subsidiaries (3E Company) Ariel EH&S regulatory databases to ensure Navy compliance with environmental laws and regulations. The EH&S module is the specifications database that houses all federal, state and local regulatory requirements: Environmental

Protection Agency (EPA), Occupational Safety and Health Administration (OSHA), etc. The specification database also maintains health and safety data found on a Material Safety Data

Sheet (MSDS). The SAP EH&S module uses the EH&S database to support compliance with statutory environmental, health and safety requirements that regulate Navy maintenance and logistic processes.

Without Ariel EH&S regulatory database software support, the necessary regulatory and reference data will not be available to ensure proper shipping and handling of materiel, thereby placing materiel handlers and recipients at greater risk of hazard. The EH&S regulatory database provides for hazard communications, new chemical notification, and the reporting of the restriction on use of hazardous substances. This includes creating compliant multi-language

MSDSs, labels, and other related documents as part of the shipping and receiving processes. The government has invested $1,582,568.60 in Ariel Systems software and support since May of

2005, which will not recouped through competition.

Market research was conducted in April 2017, to determine a method of procurement. The software support is not available through Enterprise Software Initiative (ESI) Blanket Purchase

Agreement (BPA). The required Ariel Software and support is not available via National

Aeronautics and Space Administration (NASA) Solutions for Enterprise Wide Procurement

(SEWP) or General Services Administration (GSA). Ariel Software and support is only available via open market through the manufacturer, 3E Company. As the software publisher, only 3E

Company has access to the software source code that is being supported. Product upgrades, maintenance releases, patches, and troubleshooting support require access to the software source code. Without access to the software source code, no other firm can provide the required support.

Based on the justification provided by the Navy, a determination has been made to procure this brand name requirement utilizing open market procedures.