JA_831608879.docx

LIMITED SOURCE JUSTIFICATION & APPROVAL (J&A) FEDERAL ACQUISITION REGULATION (FAR) PART 8 ACQUISITIONS Multiple Award Schedule (MAS)/Multiple Award Contract Orders under MAS/General Services Administration Schedules (GSA)/Federal Supply Schedules (FSS) FAR 8.405-6

Purchase Request Number: (Deleted Text) Contract Number: To Be Determined (TBD) Task/Delivery Order Number: TBD Procurement Title: Document Management and More (DM2) Services Estimated Value: $189,439.50 Limited Source Authority: FAR 8.405-6 (a)(1)(i)(B)

LIMITED SOURCE JUSTIFICATION

J&A Number: N/A

Upon the basis of the following justification, I, as Contracting Officer, hereby approve this limited source justification in accordance with FAR 8.405-6(a)(1)(i)(B). The acquisition referenced herein is conducted under the authority of the Multiple Award Schedule Program.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requesting Agency: Puget Sound Naval Shipyard 1400 Farragut Ave. - Bldg. 850-A, 5th floor Bremerton, WA 98314-5001

b. Contracting Activity: DISA/DITCO-SCOTT-PL83 2300 East Drive Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

The nature of this requirement is to procure support for Document Management and More (DM2) services for Puget Sound Naval Shipyard (PSNS). This procurement will be awarded as a firm fixed priced (FFP) delivery order via the GSA Federal Supply Schedule (FSS). This contract is required to avoid a break in service until the replacement software, currently in development, is completed and to provide a transition from the old software to the new. There is one authorized service providers on the GSA FSS – Intergraph Government Solutions Corporation.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. PSNS requires the procurement of DM2 Services to provide continuing integration and support of the DM2 system and to provide programming services for Oracle, Microsoft Visual Basic, and other systems as directed.

Page of

Pages

b. The period of performance (PoP) will be 26-Sep-16 to 26-Dec-16 for the Base Period and will have two Option Periods – 27-Dec-16 to 27-Mar-17 for Option Period 1 and 28-Mar- 17 to 28-Jun-17 for Option Period 2. The total estimated cost is $189,439.50. Fiscal year 2016 Operations and Maintenance, Navy funds are provided under Military Interdepartmental Purchase Request number (Deleted Text). The applicable North American Industry Classification System code is 541511, Custom Computer Programming Services, with a size standard of $27,500,000.

c. A breakout of the requested skill levels for the professional services are listed below:

4. IDENTIFICATION OF LIMITED SOURCE AUTHORITY AND DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Circumstances Justifying Limiting the Source. FAR 8.405-6 (a)(1)(i)(B), only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

(b) Description of the Justification. The required DM2 Support is unique because DM2 is proprietary software, manufactured by Intergraph Government Solutions Corporation, that has been customized to interface with shipyard applications. Intergraph Government Solutions is the only source legally authorized to modify the source code for DM2 software. There are no resellers of the DM2 software. As a result, no other contractor is able to provide the required DM2 support.

(c) Justification:

(1) Minimum Government requirements. PSNS is currently using proprietary software known as DM2 to manage the life cycle of documents. PSNS requires DM2 system and user support. This support includes software enhancements to all components of the DM2 system, as well as hardware and software configuration. Support also consists of system integration and programming services when needed.

(2) Proposed sole source contractor. Intergraph Government Solutions Corporation.

(3) Discussion regarding cause of the limited source situation. DM2 is a customized product and Intergraph Government Solutions Corporation owns the copyrighted source code 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. There are no resellers of the DM2 software. Only Intergraph Government Solutions Corporation will be able to satisfy the program’s requirement for their service needs.

(4) Demonstration of limited source. As described above, Intergraph Government Solutions Corporation owns the copyrighted source code and is the only source that can legally modify or change the software. Intergraph does not authorize any resellers to provide DM2 software support. As such, Intergraph is the only source that can meet the Government’s requirement.

(5) Procurement discussion. The software to replace DM2 is already in development under another contract. This contract is required to ensure support for DM2 until the new software is operational. Intergraph Government Solutions Corporation is the current DM2 support contract provider, and the only DM2 service provider. Their knowledge and support of the existing DM2 application is critical during this transition.

(6) Impact. PSNS is currently using DM2 services to manage the life cycle of documents, objective quality evidence (OQE) and Quality Assurance (QA) Fleet Forms that are required for the repair and maintenance of naval ships and submarines. It is also used with Advanced Industrial Management (AIM) New Technology (NT) and AIM eXPerience (XP) to manage the availabilities along with assisting with the certification of documentation and managing Submarine Safety (SUBSAFE) program at PSNS & IMF. These documents are essential in helping to ensure the safety of U.S. Navy personnel. Awarding to a vendor other than Intergraph Government Solutions Corporation would result in probable loss or corruption of these documents, which could lead to possible neglect of naval ships and submarines and thereby endangering the welfare of individuals and jeopardizing the PSNS mission.

5. BEST VALUE DETERMINATION:

The Contracting Officer has concluded that the acquisition strategy to issue a delivery order against Intergraph Government Solutions Corporation’s GSA FSS, GS-35F- 0011K, will represent the best value (as defined in FAR 2.101) and result in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs. Although GSA has already negotiated fair and reasonable pricing, as the rates have been established within the GSA FSS schedule, additional discounts will be requested. In addition, the contracting officer will determine whether the anticipated cost is fair and reasonable based on comparisons with the Independent Government Cost Estimate (IGCE).

6. MARKET RESEARCH:

Based on current market research, dated June 2016, it has been determined that only Intergraph Government Solutions Corporation is able to provide DM2 services, and therefore is the only contractor that can fully support the Government’s need. This requirement is for proprietary 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. As previously stated, the Government is pursuing development of an alternative solution that would remove the current barriers to competition.

7. ANY OTHER SUPPORTING FACTS: None

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE BARRIERS THAT LED TO THE RESTRICTED CONSIDERATION:

a. Procurement history.

(Deleted Text)

b. PSNS is working on a replacement for DM2 since the proprietary code is outdated and may not be sustainable in the future without continuous sole-source support. Due to the complex integration of DM2 with the existing applications, it was determined that a COTS product/application would not be a feasible replacement. Therefore, a replacement has been in development for over a year and is near completion. Intergraph Government Solutions Corporation, the existing DM2 support contract provider, has been on-site throughout this period and their knowledge and support of the existing DM2 application is critical during this transition. The level of complexity of the transition and impact on users is still unknown, which is why this support is requested with option periods.

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

No written AP is required, as it does not meet the required dollar threshold.

(Deleted Text)