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DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

J&A Number:22-0097

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center, Aircraft Division (NAWCAD) Patuxent River, MD

2. Description of the Action Being Approved.

This Justification and Approval authorizes and approves the issuance of a fixed-price contract for the procurement of Tk20 software subscription renewals on a sole source basis to Watermark Insight, LLC (Watermark). The period of performance is anticipated to be five (5) years.

3. Description of Supplies/Services.

The NAWCAD Webster Outlying Field Integrated Command, Control & Intel Systems (IC2&IS) Division was tasked by the Marine Corps Systems Command (MCSC) to procure the Watermark brand name Tk20 software subscription renewals in support of the Distance Learning (DL) College of Distance Education and Training (CDET) program. Watermark Tk20 software is currently in use by the DL CDET. Tk20 by Watermark is assessment and accreditation management software currently being utilized to collect data and generate detailed reports for compliance, analysis, and programmatic improvement for the DL CDET program. The Marine Corps University (MCU) utilizes Watermark Tk20 to manage, record and report on their academic accreditations. The MCU is able to assess courseware and rubrics to ensure they meet regulatory and education requirements for degree granting institutions.

Estimated Dollar Value

Funding Type FY22 FY23 FY24 FY25 FY26 TOTAL

Operations and Maintenance, Marine

Corps

$199,511

$191,559

$201,137

$211,194

$221,754

$1,025,155

Total $199,511 $191,559

$201,137

$211,194

$221,754

$1,025,155

4. Statutory Authority Permitting Other Than Full and Open Competition.

41 U.S.C. 1901, Simplified acquisition procedures (Certain Commercial Items).

5. Rationale Justifying Use of Cited Statutory Authority.

Watermark is the sole holder of copyright and other intellectual property rights in its Tk20 by Watermark product.

Watermark is the only source capable of providing and supporting this product and has no authorized distributors.

There are no maintenance providers authorized by Watermark to provide for both maintenance and software upgrades. Similarly, a software failure must be resolved by Watermark. The Tk20 software currently in use by the DL CDET program was awarded as a sole source contract on 03 March 2021, contract N0042121P0262. No other developer’s maintenance and support products can provide the software subscription renewals and updates required to maintain the integrated Watermark Tk20 software.

J&A Number: 22-0097

The total estimated cost to transition to an alternate software product is $2M, which includes the cost to replace the installed Watermark software, test the new software product, and perform software engineering validation required to integrate the new software solution. Selecting alternative software, maintenance, and support would also cause a 12-month delay. Due to the time required to test and integrate the new required software, any interruptions of the Watermark software maintenance and support services would result in interruptions to distance learning across the Department of Navy and Marine Corps for enlisted and officer personnel.

If the required software products and support are delayed or not procured, it would affect the Marine Corps’ ability to provide training and a collaborative educational environment. Without the appropriate training certification, troops cannot be deployed, and would delay the Marine Corps operational readiness and consequently the ability to defend against adversaries. Development of custom software would also delay the Marine Corps personnel promotions. Delays would impede personnel from completing the mandatory training for Enlisted Professional Military Education and Officer Professional Military Education necessary to promote personnel. Annual refresher courses covering topics like Personally Identifiable Information, emergency preparedness courses covering topics like first aid and emergency response, and strategic and tactical courses covering topics like weapon repair would be unavailable to all Marines. Furthermore, payroll is withheld from any personnel without the required training certifications by the assigned deadlines. This would impact their effectiveness, the ability to train, and the ability to deploy from command to squads.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Thorough market research was conducted utilizing various methods to identify additional possible sources for the required software and to obtain product availability and price. A search was performed using the nomenclature “Assessment and Accreditation Management Software” which resulted in the identification of several developers of this type of software. The search found results from Watermark, Questionmark Corporation, and Blackboard Inc.

However, neither Questionmark Corporation nor Blackboard Inc. met the requirement for interoperability with existing software. It was found that Watermark is the sole developer and distributor of the Tk20 software.

On 14 March 2022, a special notice Request for Information (RFI) for Assessment and Accreditation Management Software was placed on the SAM.gov website to survey the marketplace for additional sources that could meet the Government’s requirements. The RFI closed on 29 March 2022. One response was received and the company was found to be indeterminable as it could not meet the Government’s requirement.

A pre-solicitation synopsis was posted on 30 March 2022 and closed on 04 April 2022. This synopsis was posted to inform industry of the Government’s intention to initiate a sole source procurement. No responses were received.

7. Determination of Fair and Reasonable Cost.

This procurement will be negotiated on a fixed price basis. IAW FAR 15.402, the Contracting Officer shall ensure that the price negotiated for this acquisition is fair and reasonable. The Contractor will submit a formal price proposal with sufficient information to support the accuracy and reliability of the cost estimate. The proposal will be reviewed by experienced technical personnel at the IC2&I Division and the cognizant Contract Specialist with assistance provided by Defense Contract Management Agency and Defense Contract Audit Agency analysts as deemed necessary. The Contracting Officer will utilize cost and price analysis IAW FAR 15.404-1 as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

For the reasons stated in paragraph 5, only Watermark can provide the required software subscription renewals. The Government will continue to evaluate other technologies that would allow for future competition by conducting market research to determine if there are any future vendors that have the capability to meet this requirement.

J&A Number: 22-0097

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

J. B. TAYLOR Date

Division Director, Integrated C2 & Intel Systems

Naval Air Warfare Center Aircraft Division Webster Outlying Field

REQUIREMENTS COGNIZANCE:

TIMOTHY P. HICKEY Date Director of Business Operations Naval Air Warfare Center Aircraft Division Webster Outlying Field

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

GARETT UNGER, ESQ. Date Attorney Office of the General Counsel Naval Air Warfare Center Aircraft Division

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

KRISTEN W. FERRO Date

Procuring Contracting Officer, Aircraft Support Contracts Department

NAWCAD Procurement Group

APPROVED

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

JEFFREY J. GUARNERO Date Chief of the Contracting Office NAWCAD Procurement Group Lead NAWCAD Procurement Group