Attachment_2_Redacted_JA.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 and FAR Part 15

Purchase Request Number: N0002419MP00423 Contract Number: To be determined Procurement Title: Siemens Teamcenter Software and Support Estimated Value:

Statutory Authority: FAR 6.302-1

JUSTIFICATION FOR OTFAOC

Justification for OTFAOC Number: JA19-052

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate (PACA), hereby approve the use of OTFAOC of the proposed contractual action, pursuant to the authority of 10 United States Code (U.S.C) 2304(c)(1) and FAR 6.302-1(a)(2), only one responsible source and no other type of supplies or services will satisfy agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

Naval Sea Systems Command (NAVSEA)/Management Systems Support Division

(MSSD)

Building 170, 6th Floor Kittery, Maine 03904-1367

Contracting Office:

Defense Information Systems Agency (DISA)/Defense Information Technology Contracting Organization/PL8321 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

a. This is an acquisition that specifies a particular brand name product that is essential to the Government’s requirements, thereby precluding consideration of a product manufactured by another company. The nature of this requirement is to procure commercial off-the-shelf (COTS), Siemens Teamcenter software and support for NAVSEA Program Management Office for Information Technology, to support the expansion of existing Siemens software footprints in both the ship acquisition and support communities. This procurement will be a firm fixed price purchase order on the open market to the original equipment manufacturer (OEM), Siemens Government Technologies, a large business. Any potential Siemens resellers will also have the ability to provide a quote.

Siemens Teamcenter Software and Support-JA19-052

b. The period of performance is one year from date of award. The total estimated lifecycle value of this requirement is . Fiscal year 2019 Other Procurement Navy funds have been provided under military interdepartmental purchase request N0002419MP00423. The applicable North American Industry Classification System code is 541519, Other Computer- Related Services, with $27.5 million sales size standard.

3. DESCRIPTION OF SUPPLIES/SERVICES:

This requirement will manage and utilize product model data delivered as part of new Navy ship, carrier, and submarine procurements. The requirement covers all of the public Naval shipyards (NSYs). Navy systems need to support the data being delivered and, in some cases, will need to interoperate with contractor systems to ensure support and modernization activities are performed efficiently. Managed product data will need to be manipulated with two and three-dimensional (2D/3D) Computer Aided Design (CAD) software and used in downstream manufacturing and repair activities, using Computer Aided Manufacturing (CAM) software.

There is also a requirement to perform mechanical, human, and process simulation and modeling, using the associated product model data to increase the efficiency of shipyard industrial processes and facility layout. All of these functions must be available in a unified and configuration-managed IT environment and interoperate with existing shipyard systems and applications.

The Siemens products that satisfy these requirements are the Siemens Teamcenter family of products: Siemens NX, Siemens Simcenter, and Siemens Technomatix. These software products are used to perform product lifecycle management (PLM), product data management (PDM), engineering design, configuration management, change management, product model visualization, service management, manufacturing management, modeling and simulation, and collaborative design analysis in a unified digital environment. The new software will be required to align with existing Siemens products in the support community, as well as interoperate with existing legacy shipyard software products. There are over 50 part numbers with various quantities associated with this requirement. The product types are summarized and briefly discussed in the following paragraphs.

The Teamcenter software allows for efficient configuration management and tracking of NSY and Regional Maintenance Center (RMC) facilities and facility-related equipment and controls, such as large industrial machinery used within specialized facilities. Solid configuration management forms the basis for the facility support, repair, and operation programs at the NSYs, RMCs, and Ship Repair Facilities (SRFs). Configuration management also provides equipment and processes to gain energy savings, and reduce rework and related costs.

The Siemens NX family of software is CAD software, used by facility engineers to design and optimize facility designs for use by the NSY, RMC, and SRF communities. The NX software is an integrated and comprehensive family of product engineering solutions that provides the NSY with the ability to digitally create and capture 3D product definitions. It allows the shipyards to create solid models, tools, fixtures, and toolpaths that enable computer numerical machines to manufacture ship parts. The Solid Edge software is a CAD application that the shipyards use for solid modeling of mechanical design, drawing generation, and creating models for Finite

Element Analysis (FEA), Rapid Prototype Manufacturing (RPM), and CAM. The required software support for these software products will provide continued technical support regarding software operations as well as assuring future version upgrades.

Simcenter Structures is an integrated advanced finite element modeling tool that enables the rapid pre- and post-processing of component and assembly models. It includes NX modeling capability to allow users to prepare geometry for simulation. For simulation, it provides a broad set of tools to aid the user in the development of abstracted geometry for meshing, advanced load and boundary condition definitions, material definitions, and support of advanced integrated solutions such as non-linear analysis, flow analysis, and multi-physics solutions. Simcenter Structure is able to format and submit finite element model analysis problems directly to NX Nastran with the NX Nastran Interface included with the Siemens software package.

The Siemens Process/Plant software is used for modeling and simulation of industrial processes to optimize the layout of buildings, shops, transportation routes, and production lines within the NSYs and RMCs. This provides both engineering and process modeling and simulation. All shipyard facilities and industrial processes will be evaluated using model-based simulation methods, with the outcomes used to produce optimized implementation plans. The Process Execution Module focuses on workflow, program and project management, change management, and portfolio management. This module streamlines the process and reduces overall costs.

Other benefits include optimizing the Navy’s portfolio with a holistic view of information as well as digitizing, optimizing, and standardizing existing processes.

Siemens PLM Solid Edge is a needed CAD application for solid modeling of mechanical design, drawing generation, and creation of models for FEA, RPM, and CAM. Additionally, the Solid Edge software is needed to generate 2D/3D CAD drawings of solid models, assemblies, and wire frame models. The software is needed to operate sheet metal CAM machines, and model and develop sheet metal flat patterns and tool designs. The software produces CAD format files suitable for CAM manufacturing of critical parts and structural components used in the overhaul of submarines in support of the fleet.

The Siemens software infrastructure also enables the Navy to manufacture parts and components for the aging fleet. The software provides the Navy with needed support engineering, including configuration identification and control, reliability monitoring, and modification control. This software is essential to the business process to ensure the aging fleet has a source of newly manufactured parts and components to replace or repair worn, broken, or corroded parts that are not available through any other source at this time.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C. 2304(c)(1) and FAR 6.302-1(a)(2).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of events:

Siemens software has been a part of the Navy environment for over 15 years. The Navy requires the sustainment of the perpetual Siemen’s software products critical to maintaining the Navy fleet and completing Navy missions. The Government has invested over in the software solution in the past six years. Additional investments were made prior to this time, including (and not limited to) technical hours and other development resource costs. Existing Siemens software at the Naval shipyards and the Submarine Maintenance, Engineering, Planning and Procurement (SUBMEPP) has an aggregate commercial list price of .

b. Justification:

(1) Minimum Government requirements. The Siemens software meets all of the Government requirements, being a fully associative 3D modeling system capable of multi-layer assemblies, kinematic verification, and basic finite element analysis.

Associativity that interrelates to all drawings and subassemblies is provided with the software, which is capable of outputting file formats to support 3D printing efforts in addition to 2D/3D formats.

(2) Proposed sole source contractor. Siemens software support products are proprietary and only available from Siemens or their authorized reseller. Siemens is the OEM for the applicable software products and does not authorize any third party software modification or patches to its software. Siemens 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. Siemens, as well as any authorized resellers of their software, will be eligible to provide a quote.

(3) Discussion regarding cause of the sole source/limited source situation. If the required software is not obtained, the Navy will lose the initial financial investment. Without the software updates and patches, the Navy would need to remove the software from the infrastructure. This would jeopardize the operation, management, security of critical systems, and the entire infrastructure. Failure to procure this requirement would result in a work stoppage which would thwart mission performance and result in the failure to effectively maintain the aging Navy fleet.

(4) Impact. Failure to procure and deploy the software will limit the ability of Navy ship maintenance personnel from viewing, editing, and managing technical and logistics data for platforms delivering product model files and associated data to the Government. This includes FORD Class aircraft carriers, VIRGINIA Block V submarines, and COLUMBIA Class submarines. While some of this software is already available in small quantities at the Naval shipyards (see section 9), it will not support the number of users who need access to this data. Without data access, ship maintenance personnel will not be able to plan, schedule, or perform maintenance and modernization tasks at Navy maintenance facilities. This could lead to ships and submarines being placed in an inoperable state. At this time, an alternative solution that meets all of the Government’s requirements has not been identified. If there was an acceptable alternative, the Government estimates that at least two years would be required to test and obtain implementation approvals. Re-coding changes would be required for various auxiliary networks and systems. There is no known alternative software solution that meets Government requirements at this time.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

Siemens Government Solutions, the OEM, has stated only 50 percent of the anticipated software and support items are available on their GSA schedule. Siemens has also stated that the only reseller available to provide quotes on their behalf will be Siemens Government Solutions and their sole reseller, Spatial Integrated Systems. This requirement will be posted as a combined synopsis/solicitation on Federal Business Opportunities.

7. DETERMINATION OF FAIR AND REASONABLE COST:

A determination will be made by the contracting officer that the contract represents the best value to the Government, as defined in FAR 2.101, and results in the lowest overall cost alternative (considering price, special features, and administrative costs) to meet the Government's needs. The contracting officer will also determine the pricing information valid for comparative purposes. Certified cost and price data is not required for this commercial item acquisition, in accordance with FAR 15.403-1(b)(3). The contracting officer will determine whether the price is fair and reasonable, based on competition (resellers), comparison of the proposed prices to historical and existing prices paid, comparison with commercial price lists, and comparison of proposed price with the independent Government cost estimate.

8. MARKET RESEARCH:

Market research was conducted in January 2019 through internet searches, internal discussions, and communication with the OEM. Several reviews of the Siemens implementation efforts at the private shipyards, specifically Huntington Ingalls Industries – Newport News Shipbuilding and General Dynamics - Electric Boat, were conducted to understand the architecture and proposed use of product model data for the new classes of aircraft carriers and submarines. This includes planned use of product model data for the Navy support community. Robust integration with the private shipbuilders is required to realize the cost and efficiency benefits of their existing model-based systems engineering efforts. The reviews also covered existing efforts to transition product model data from non-Siemens software to a Siemens compatible, or International Organization for Standardization format, due to supportability and integration problems with the non-Siemens software.

Several commercial case studies were examined to understand the issues and complexities involved in operating different PDM or PLM software suites in unison. A full review of existing Siemens software baselines was completed for the Navy’s shore support community to understand the current software baseline and the software quantities needed to facilitate expansion of current and planned capabilities. A review of current integration costs, based on labor hours from the Navy Maritime Maintenance Enterprise Solution’s work breakdown structure, was conducted to understand the costs associated with integration of COTS software with existing ship support systems. There are three major vendors in the industrial PLM market including Siemens. At a high level, all of them can support the essential software functions listed above; however, compatibility limitations with existing legacy software systems require the purchase of Siemens products.

For example, one the vendors uses a system with an object based structure and closed architecture. Integrations with other toolsets requires significant effort and in some cases is not possible. Thus, utilizing this system would require replacing, rather than operate alongside the existing Siemens products, negating previous investments in Siemens software as well as the operational issues stated in Section 5.

Use of another vendor’s solution will require substantial costs to be properly integrated with the existing and planned Siemens configurations, and can risk the integrity of the data as it migrates between asynchronous software systems. As a reference, the current labor cost of integrating COTS software into the existing ship support applications amounts to an average of per month, from February through June 2018. This equates to a yearly cost just over .

Integration efforts for this type of work usually take 18 to 24 months to complete, including testing, troubleshooting, and training. This equates to a total cost for integration between and Implementation and integration of redundant software from a non-Siemens supplier would result in significant duplication of integration work, as well as fracture the workforce across different toolsets, workflows, and software toolsets. Not only would this result in a substantial duplication of effort, it could also negatively affect the performance of ship support processes.

Market research revealed that Siemens software and support is only available through the OEM or their single reseller, Spatial Integrated Systems Inc. Market research revealed the Siemens software and support is not available through a Department of Defense Enterprise Software Initiative Blanket Purchase Agreement, a General Services Administration Federal Schedule, or on the National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement V Government-wide acquisition contract. It was found that this software is only available through the open market, from Siemens or their authorized reseller. Therefore, this will be a brand name procurement on the open market to Siemens Government Solutions and any possible resellers.

9. ANY OTHER SUPPORTING FACTS:

The NSYs deploy a wide range of Siemens software products today. Table 1 shows the overall software types in use at the NSYs. The table also includes software employed by SUBMEPP office, who owns the Maintenance and Ship Work Planning (M&SWP) system. The M&SWP system serves as the entrance to the Navy depot-level support process, providing the availability work package to the suite of ship support systems used at the NSYs.

Table 1: Existing Siemens Products in the Ship Support Community

Siemens Products at the Naval Shipyards

TC

NX

CAD NX CAM Simulation

Solid Edge Training

Norfolk • • • • • • Puget Sound • •

Portsmouth • • • • Pearl Harbor • • • •

SUBMEPP •

Additionally, the FORD Class aircraft carriers, VIRGINIA Block V submarines, and COLUMBIA Class submarines are being designed and built using Siemens Teamcenter and NX.

The use of digital product models with integrated product manufacturing information is a cornerstone for all of these programs. Integration between the design, support, supply, and business functions within the public and private shipyards is intended to reduce the total lifecycle cost of the platform.

10. LISTING OF INTERESTED SOURCES:

When market research was conducted, Siemens Government Solutions and Spatial Integrated Solutions were the only vendors found to have capabilities to provide this requirement. As stated in paragraph 6, above, a combined synopsis/solicitation will be published prior to contract award.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

In order for the Navy to have the continued capability to maintain, operate, and protect the Navy fleet, the expansion of existing Siemens PLM software and support must be procured. At this time, only Siemens, or an authorized reseller of the Siemens PLM software products, can support the existing infrastructure used to maintain the Navy vessels. No other brand name software or support could interoperate with the current infrastructure. If the OEM elects to surrender their legal ownership, copyright, and/or intellectual property software rights and move toward a complete open-source solution, the Government will seek open competition. Regardless, the Government will continue to search the marketplace to determine if alternative solutions exist.

The Government anticipates an annual review of the infrastructure will occur over the next five to ten years. The Government will re-evaluate the infrastructure and research solutions to open competition. Every effort will be made to compete requirements to the maximum extent practicable.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): In accordance with DISA Acquisition Regulation Supplement 7.103(S-90)(1), an AP is not required.

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Contract Specialist Michael Jacobs; michael.h.jacobs1.civ@mail.mil, 618-418-6706.