JA_Spatial_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, and FAR Part 15

Funding Document Numbers: N3225319MP14147, N4523A19MP065V3, N3904019MP90086 and N4215819MP90205 Contract Number: To be determined (TBD) Task/Delivery Order Number: TBD Procurement Title: Spatial Analyzer Software Support Estimated Value: $328,108.00 Statutory Authority: FAR 6.302-1

JUSTIFICATION FOR OTFAOC

Upon the basis of the following justification, I, as the Contracting Officer, 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 supplies or services will satisfy agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agencies:

Norfolk Naval Shipyard (NNS) – UIC N42158 Building 74-2 Portsmouth, Virginia 23709-5000

Pearl Harbor Naval Shipyard (PHNS) – UIC N32253 667 Safeguard Street, Suite 100 Pearl Harbor, Hawaii 96860-5033

Portsmouth Naval Shipyard (PNS) – UIC N39040 Building 170, 6th Floor Portsmouth, New Hampshire 03804-5000

Puget Sound Naval Shipyard (PSNS) – UIC N4523A 1400 Farragut Avenue Building 850-A, 5th Floor Bremerton, Washington 98314

b. Contracting Office:

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

Spatial Analyzer Software Support

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2. NATURE/DESCRIPTION OF ACTION(S):

The nature of this action is to renew the brand name, commercial off-the-shelf, Spatial Analyzer software support for the NNS, PHNS, PNS, and PSNS. This will be a firm fixed price purchase order to New River Kinematics, Inc., the original equipment manufacturer (OEM), who has proprietary rights to the Spatial Analyzer software products. New River Kinematics, Inc. does not have authorized resellers to provide the required support. The period of performance is from August 27, 2019 through August 26, 2020. The total estimated value is $328,108.00. Fiscal Year 2019 Navy operation and maintenance funds have been provided for this procurement under Military Interdepartmental Purchase Request Numbers N4523A19MP065V3, N3904019MP90086, N4215819MP90205, and N3225319MP14147. The applicable North American Industry Classification System code is 511210, Software Publishers with a sales size standard of $38.5 million.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The required renewal of Spatial Analyzer software has already been implemented and is in use at the NNS, PHNS, PNS, PSNS, and all of their satellite activities. This software support is essential to utilize the existing Navy Portable Coordinate Measurement Equipment (PCMM) devices at these shipyards. This support will provide all required software updates, upgrades, fixes, and patches.

b. The Spatial Analyzer software is a traceable metrology three-dimensional graphical software platform that can simultaneously communicate to virtually any number and type of dimensional measurement systems. It is utilized by various shops, including structural, machine shop, sheet metal, temporary services and nuclear, within their systems to support existing laser scanners, laser trackers, gage arms, roamer 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, as well as other various inspection activities. These activities take place 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 its ability to operate the various shipyard production and measurement instruments, regardless of the product manufacturer. The Spatial Analyzer software is the Navy standard for use with portable industrial metrology equipment.

c. The required software support is outlined below:

Part # Keys Quantity

NORFOLK NAVAL SHIPYARD

SA GRP LIC

EXT

Spatial Analyzer Discount Group License Support and Update Support - Per 100 users. 1 each

SA GRP UL

NTWK EXT

Spatial Analyzer Ultimate Group Network License Support and Update Support. Includes Native CAD - Master Group Network License 8010 valid for 18 nodes.

18 each

PEARL HARBOR NAVAL SHIPYARD

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SA UL+

EXT

Spatial Analyzer Ultimate Software Support Pearl Harbor Keys 2147, 2162, 3554, 6604, 6605, 6606, 6795, 7525, 6796, 6798, 7462, 7479

12 each

SA UL+

EXT

Spatial Analyzer Ultimate Software Support Pearl Harbor Keys 8645, 8646, 8649, 8650, 8651, 8652, 8653, 8 each

PORTSMOUTH NAVAL SHIPYARD

SA UL+

EXT

Spatial Analyzer Ultimate Software Support Portsmouth Keys 1657,3596, 3740, 4185, 4186, 4187, 5997, 6456, 7352, 7353, 7593, 8540

13 each

PUGET SOUND NAVAL SHIPYARD

SA UL+

EXT

Spatial Analyzer Ultimate Software Support Puget Sound Keys 2111, 2481, 2566, 2687, 4207, 4759, 4761, 5114, 5522, 5523, 5568, 5908, 6144, 6757, 6758, 7508, 7511, 8009, 8289, 8255, 8286, 8287

22 each

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). (FAR 6.302-1/Defense FARS 206.302-1).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of events. Spatial Analyzer software licenses are utilized in the design, creation, configuration, testing, training, and for the migration of users into the Naval Shipyards infrastructure for over five years. The Department of the Navy (DON) has invested an estimated $2 million in Spatial Analyzer licenses and support. Currently, the Spatial Analyzer Software is the only authorized software for use by the Navy under the DON’s Application and Database Management System. 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/war fighting functions required.

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, Inc. is the sole manufacturer of the required, Spatial Analyzer software 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, Inc., the OEM, will satisfy this requirement, as the Spatial Analyzer software is proprietary. New River Kinematics, Inc. does not authorize distributors or resellers to market or sell their products. Additionally, they do not authorize any third party software modification or patches to their software. The

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OEM owns the copyrighted source software with all legal rights, privileges, and ownership contained therein. No other contractor or distributor can legally obtain access to the software; nor can they make duplicate copies, since copyright and patent laws protect it.

(4) Demonstration of unique source. Spatial Analyzer software support renewal is essential to the Government’s requirement, as New River Kinematics, Inc. offers the only brand name product support to maintain the current Spatial Analyzer software to support Navy’s metrology three-dimensional graphical software platform. Only Spatial Analyzer brand name software meets the required need for support and compatibility with the existing architecture. No other brand name products can seamlessly integrate with the existing infrastructure. In order to protect the Navy’s current environment and provide continuity of operations, the current Spatial Analyzer products must be maintained to meet the Government’s organizational needs. As noted above, the Spatial Analyzer products identified are proprietary, and upgrades and support are only available from New River Kinematics, Inc.

(5) Procurement discussion. Naval Shipyards have made a significant investment, in excess of $2 million, procuring Spatial Analyzer software, licenses, and continued software support in the past five years. In addition, the Naval Shipyards have invested over $1.25 million in installation, configuration, and training costs. It is necessary to leverage this investment as the Spatial Analyzer continues to meet their mission of overhauling Naval Ships and Submarines. Considering the amount of investment and the software’s ability to operate on multiple pieces of equipment, regardless of the manufacturer, 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. 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 $1 million daily. Additionally, the Spatial Analyzer software would not receive the necessary updates, upgrades, and patches upon which the Government depends to provide continuity of operations.

6. FEDBIZOPPS (FBO) ANNOUNCEMENT/POTENTIAL SOURCES:

A synopsis/solicitation for this requirement will be published on the https://www.fbo.gov website, as required by FAR Subpart 5.2. A copy of the redacted J&A will be posted with the synopsis/solicitation.

7. DETERMINATION OF FAIR AND REASONABLE COST:

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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 comparison of the proposed prices to the commercial price list and the independent Government cost estimate.

8. MARKET RESEARCH:

a. Market research was conducted March through April 2019 by each of the Naval Shipyards when assessing the software support renewals. 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 viability of a vendor's product was based on the product's ability to fulfill the mission-critical requirements of supporting existing Navy PCMM devices at NNS, PSNS, PNS, and PHNS. The Naval Shipyards determined that there is no other product on the market that can provide the necessary functionality that the Spatial Analyzer provides. The market research also revealed New River Kinematics, Inc. is the only source that can satisfy the agency’s requirements for Spatial Analyzer software licenses and support.

b. Market research concluded Spatial Analyzer software support is not available through existing Government contract vehicles, to include Department of Defense Enterprise Software Initiative Blanket Purchase Agreement, National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement V Government-wide acquisition contract, or General Services Administration Schedule. The required software support is only available via the open market, from the only known source, New River Kinematics, Inc., a small business. Therefore, this requirement will be published on FBO as a sole source procurement.

9. ANY OTHER SUPPORTING FACTS:

None.

10. LISTING OF INTERESTED SOURCES:

The small business, New River Kinematics, Inc., is the only vendor that can provide the proprietary products to meet the Navy’s requirement/need. A combined synopsis/solicitation will be published as required by FAR 5.2.

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: HC102818P0133

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Contractor: New River Kinematics, Inc.

Period of Performance: August 27, 2018 through August 26, 2019 Lifecycle Amount: $407,700.00 Competition Status: Sole source procurement to New River Kinematics, Inc.

Description of Procurement: Spatial Analyzer software and support

Contract Number: HC102817P0172 Contractor: New River Kinematics, Inc.

Period of Performance: August 27, 2017 through August 26, 2018 Lifecycle Amount: $265,147.00 Competition Status: Sole source procurement to New River Kinematics, Inc.

Description of Procurement: Spatial Analyzer software and support

Contract Number: HC102816P0216 Contractor: New River Kinematics, Inc.

Period of Performance: August 27, 2016 through August 26, 2017 Lifecycle Amount: $596,228.00 Competition Status: Sole source procurement to New River Kinematics, Inc.

Description of Procurement: Spatial Analyzer software and support

b. At this time, only New River Kinematics, Inc. can provide the required software support for the existing Navy’s portable coordinate measurement equipment software. If New River Kinematics, Inc. elects to surrender their legal ownership, copyright, and/or intellectual property software rights, and move toward providing an open source solution for the products being renewed under this procurement, then the Navy will seek open competition. Regardless, the Government will continue to search the marketplace, and alternative software solutions will continually be researched to determine if alternative solutions exist. If the Government should determine that the above brand name products are no longer required, the Government will seek a competitive acquisition approach for the required functionality. At that point, every effort will be made to compete it to the maximum extent practicable based on new technologies that will support the DON’s graphical software platform.

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

In accordance with the exceptions under DISA Acquisition Regulation Supplement 7.103(S- 90)(1), 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: Kurt Willrich SIGNATURE: See separate PDF

TITLE/ORGANIZATION: MSSD Management Analyst, NASEA 04I

PHONE: 207-438-1680 DATE: July 17, 2019

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: Angela Dubois SIGNATURE: See separate PDF

TITLE/ORGANIZATION: MSSD Management Analyst

PHONE: 207-438-1622 DATE: July 17, 2019

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete, to the best of my knowledge and belief. Since this effort exceeds $250K but does not exceed $700K, this certification serves as approval.

NAME: Danette L. Wesselmann SIGNATURE: See separate PDF

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

PHONE: 618-418-6273 DATE: XXXXXXXX

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Betty Burris, 618-418-6291, betty.a.burris4.civ@mail.mil.