LSR_redacted_N0003918MP00488_Ariel.pdf

Limited Sources/Sole Source Rationale

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

Navy Enterprise Business Solutions (EBS) 1325 10th Street SE, Bldg. 196, Suite 400 Washington, D.C. 20374

Contracting Activity:

Defense Information Systems Agency (DISA) Defense information Technology Contracting Organization (DITCO) 2300 East Drive Scott AFB, IL 62225-5406

2. Procurement Title: Ariel Software Renewal

Funding Document Number: N0003918MP00488 Purchase Request Number: 1400705812 Contract Number: TBD Estimated Value: XXXXXXXX

3. Statutory Authority of Federal Acquisition Regulation (FAR): In accordance with (IAW) FAR Part 13.106(b)(1), 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).

4. Description of Action: The Navy Enterprise Maintenance Automated Information System (NEMAIS) of the Navy’s Enterprise Resource Planning (ERP) program and the Navy EBS require the renewal of Ariel software support. The period of performance is June 15, 2018 – June 14, 2019. The total estimated contract cost is XXXXX. Fiscal year 2018 funds were provided under Military Interdepartmental Purchase Request (MIPR) N0003918MP00488. The North American Industrial Classification Code is 541519 with a sales size standard of $27.5 million. The required software support items are outlined below.

Navy EBS purchases a yearly subscription to the Ariel Environmental Health & Safety (EHS) regulatory databases to support the NEMAIS and Navy ERP. The renewal support is needed to ensure Navy compliance with environmental laws and regulations. The

Item Description Quantity

Ariel Regional Product Safety Data and ADM-EHS SAP Data Loading and Management Tool

2 Ariel Multilingual SDS Phrases 1 3 Ariel Multilingual Regulatory Phrases 1 4 Ariel ADM EHSAP Maintenance Support 1 5 Ariel Maintenance Travel Support 1

Ariel EHS 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 Navy ERP programs are SAP software based. The SAP EHS module uses the Ariel EHS software licenses and databases to support compliance with the various statutory requirements that regulate Navy maintenance and logistic processes.

The requirement is for software support renewal of the licenses and data sets for the Navy in connection with the Navy ERP Maritime/Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance or C4ISR program in order to simplify the management and improve the utilization of regulatory data and health and safety phrase creation and maintenance. The Ariel products needed include Ariels’ support renewal for the Staging Area License, Global Regulatory Data Feeds for Integration, International Transportation Database, Physical/ Chemical Properties Database License and Phrase Library.

The NEMAIS, in conjunction with the Navy’s ERP program, has identified support renewal requirement is mission critical. Without the Ariel EHS regulatory database software support renewal, 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 EHS regulatory database provides for hazard communications, new chemical notification, and the reporting of the restriction on use of hazardous substances. The software also provides the needed capability of creating compliant multi-language MSDSs, labels, and other related documents as part of the shipping and receiving processes.

5. Proposed Sole Source Contractor: 3E Company Environmental, Ecological and Engineering., doing business as 3E Company, is the original equipment manufacturer (OEM), maintaining sole proprietary rights to the Ariel software products. There are no authorized resellers.

6. Market Research: Government market research was conducted in March through late May 2018. The Navy determined that the already implemented Core SAP software suite required the continued Ariel software support to provide the EHS regulatory information needed to ensure Navy compliance with laws and regulations. The Government investigation revealed that the Core SAP software suite alone could not meet the Navy’s needs, and there was no other solution that could satisfy Navy requirements other than the renewal support of the Ariel software infrastructure, including the support for the Ariel EHS regulatory databases.

Navy ERP has fully integrated and implemented Ariel software into the technical architecture. This procurement is for the maintenance renewal on the fully implemented software. Market research was conducted through several websites and direct contact with the OEM, 3E Company, a large business. The requirement items are not available through Department of Defense Enterprise Software Initiative Blanket Purchase

Agreement, National Aeronautics and Space Administration Solutions for Enterprise Wide Procurement, and General Services Administration contract vehicles. The items are only available through open market order to the 3E Company. There are no authorized resellers.

Based on current market research, dated May 2018, it has been determined that only the aforementioned Ariel software provided by OEM, 3E Company, 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 provides the same functionality, the original equipment manufacturer releases ownership rights of product, or it is economically feasible to procure a new system.

7. Upon the basis of the following justification, I, as the Contracting Officer, hereby approve this sole source justification for the proposed contract action pursuant to the authority cited above as the particular brand-name product is essential to the Government's requirements, and market research indicates other companies' products or services do not meet, or cannot be modified to meet, the agency's needs.

Based on the justification provided by the Navy EBS and Navy ERP Program Office, a determination has been made to issue a sole source solicitation for the above described brand name requirement.

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