Siemens_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 13.5, and FAR Part 15

Purchase Request Number: N3904018MP80022 and N3904018MP80029 – Portsmouth, N4215818MP80045 – Norfolk, N3225318MP14050 - Pearl Harbor, N4523A18MP009V3 - Puget Sound Contract Number: To be Determined (TBD) Purchase Order Number: TBD Procurement Title: Siemens PLM Software Support for the U.S. Navy’s Norfolk Naval Shipyard, Pearl Harbor Naval Shipyard, Portsmouth Naval Shipyard, and Puget Sound Naval Shipyard.

Estimated Value:

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

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: Not Applicable (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:

U.S. Navy’s Management Systems Support Division (MSSD) Building 170, 6th Floor Portsmouth, New Hampshire 03804

b. Contracting Office:

Defense Information Systems Agency (DISA) Defense Information Technology Contracting Organization (DITCO) - Scott AFB/PL8321 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

The nature of this action is to renew commercial, off-the-shelf, brand-name, Siemens PLM software support for the U.S. Navy’s Naval Shipyards. The period of performance is for one year, estimated to be from January 1, 2018 through December 31, 2018. The total estimated amount is . Fiscal Year 2018 U.S. Navy’s Operation and Maintenance funding has been provided on Military Interdepartmental Purchase Request

Page 2 of 11 Pages numbers N3904018MP80022 & N39040MP80029, N4215818MP80045, N3225318MP14050, and N4523A18MP009V3. The North American Industrial Classification System code is 541519, with a sales size standard of $27.5 million. This firm fixed priced procurement will perpetuate existing coverage under contract HC1028- 17-P-0022 which expires December 31, 2017.

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.

i. 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.

ii. 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

Page 7 of 11 Pages contractor or distributor can make duplicate copies because copyright and patent laws protect this Siemens software.

iv. Demonstration of unique source:

Software must be a fully associative 3D modeling system capable of multi-layer assemblies, kinematic verification and basic finite element analysis. Associativity must interrelate to all drawings and subassemblies.

System should be capable of outputting file formats to support 3D printing efforts in addition to three dimensional and two dimensional formats.

Autodesk Inventor, PTC Windchill, Solidworks softwares were reviewed and found as not compliant to the Governments needs. Siemens’ software and support completely fulfilled all of the required essential characteristics. 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.

v. Procurement discussion:

This procurement is for s follow-on contract, HC1028-17-P-0022, for the continued support for the Siemens software. There are no other software to replace the current Siemens that could be successfully integrated into the in-place infrastructure. Awarding 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. 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.

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.

vi. Impact:

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. Siemens PLM software support has been approved by the Department of Navy

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Application and Database Management System and is required to be utilized in the Navy Shipyards.

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 market research quote provided by Spatial Integrated Systems, Inc. was compared with the pricing from the previous contracts used to procure the same software support.

The price quote represented a price to the Government that a prudent person would pay in the conduct of competition business. The anticipated cost to the Government is fair and reasonable based on comparison of the quote received to the Independent Government Cost Estimate.

8. MARKET RESEARCH:

a. 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 Original Software Manufacturer releases ownership rights of product, or it is economically feasible to procure a new system.

b. The mandatory contracting vehicle, Enterprise Department of Defense Software Initiative Blanket Purchase Agreement (DoD ESI BPA), was reviewed and determined as unavailable for Siemen software and support.

c. Market research was conducted on GSA, the National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement (NASA SEWP), and the open market in November 2017 requesting market research quote. After posting the request for quotes, no market research quotes were received. The Original Software Manufacturer, Siemens, provided a list of authorized resellers.

This list contained around 40 authorized resellers; only one of these resellers are able to quote through GSA.

d. The DoD ESI BPA, GSA and NASA SEWP contracting vehicles have all been reviewed as possible options for procuring the requested Siemens Software Support. It has been determined that the best pricing would be received through the open market by a small business.

9. ANY OTHER SUPPORTING FACTS:

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N/A

10. LISTING OF INTERESTED SOURCES:

a. 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. There are multiple small business authorized resellers available to provide the required products.

b. Based on the results of the market research, the following are a few potential sources that were identified:

Contractor Name Cage Code DUNS Business

Category Vehicle

Spatial Integrated Systems, Inc. 1BLA0 176073633 Small OM Paydarfar Industries, Inc. 4A2J9 603110755 Small OM Acuity Search Solutions, Inc. 7PFH8 069799064 Small OM VMH International, LLC 5BYJ7 959754347 Small OM Gray Manufacturing Technologies LLC 6ZRU0 078852512 Small OM

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

a. 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.

b. Procurement History:

i. Similar software and support has been previously procured through the following contracts:

1) HC1028-17-P-0022 was procured through open market with a POP of 1/1/2017 through 12/31/2017. The purchase order was awarded to Spatial integrated Systems, Inc. for the total amount of

The solicitation was a set-aside to small businesses.

2) HC1028-16-P-0050 was procured through the open market with a POP of 1/1/2016 through 12/31/2016. The purchase order was awarded to Spatial Integrated Systems, Inc. for the total amount of

. The solicitation was set-aside to small businesses.

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3) HC1028-15-F-0302 was procured through GSA with a POP of 7/31/15 through 7/30/16. The delivery order was awarded to Spatial Integrated Systems, Inc. for the total amount of

The solicitation was to both large and small businesses.

4) HC1028-15-F-0159 was procured through GSA with a POP of 3/27/15 through 3/26/16. The delivery order was awarded to Spatial Integrated Systems, Inc. for the total amount of The solicitation was to both large and small businesses.

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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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Marcia Adair SIGNATURE:

TITLE/ORGANIZATION: Management Analyst/MSSD

PHONE: DATE: 11/21/2017

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Becky Taylor SIGNATURE:

TITLE/ORGANIZATION: Management Analyst/MSSD

PHONE: DATE: 11/21/2017

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Tricia Singler SIGNATURE:

TITLE/ORGANIZATION: Contracting Officer, DISA/DITCO/PL8321

PHONE: 618-229-9378 DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Contracting Officer, Tricia Singler, 618-229-9378, tricia.l.singler.civ@mail.mil.

11/21/2017

ADAIR.MARCIA.

M.1385116167

Digitally signed by ADAIR MARCIA M 1385116167 DN: c=US o=U S Government ou=DoD ou=PKI ou=USN cn=ADAIR MARCIA M 1385116167 Date: 2017 11 21 13:22:23 05'00'

TAYLOR.REBECC

A.L.1011715822

Digitally signed by

TAYLOR.REBECCA.L.1011715822

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USN, cn=TAYLOR.REBECCA.L.1011715822 Date: 2017.11.21 13:47:12 -05'00'

SINGLER.TRICI

A.L.128370966

Dig tally signed by SINGLER TRICIA L 1283709660 DN: c=US o=U S Government ou=DoD ou=PKI ou=D SA cn=S NGLER TRIC A L 1283709660 Date: 2017 11 21 13:34:08 06'00'