JA20-095 redacted 832016181 Siemens renew NAVSEA.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: N0002420MP00610 Contract Number: To be determined (TBD) Task/Delivery Order Number: TBD Procurement Title: Siemens Teamcenter Software and Support Renewal Estimated Value: XXXXXXXXX Statutory Authority: FAR 6.302-1

Justification for OTFAOC Number: JA20-095

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate (PACA), hereby approve the use of other than full and open competition 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, only one responsible source and no other type of supplies or services will satisfy Agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

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):

The nature of this requirement is to procure the renewal of proprietary, brand name, commercial off-the-shelf (COTS), Siemens Teamcenter software renewal support for the NAVSEA Program Management Office for Information Technology. The renewal support is needed to obtain updates and technical support for the Siemens software already integrated within the existing ship acquisition and support communities’ infrastructure. The period of performance is date of award through December 31, 2020. The support expired under the open market order HC102819C0006 on March 31, 2020 and must be brought current from April 1, 2020. With the reinstated support period, the Government will be entitled to software updates from April 1, 2020 through December 31, 2020. This procurement will be a firm fixed price purchase order on the open market to the original equipment manufacturer (OEM), Siemens Government Technologies, Inc., a large business. While there are authorized resellers for new Siemens software procurements, the OEM’s policy requires that the Siemens renewal support be procured

Siemens Teamcenter Software Support Renewal-JA20-095

Page 2 of 8 Pages through only the OEM, the entity that provided the Siemens software of order HC102819C0006.

This sole source requirement will be publicized on the Contract Opportunities (beta.sam.gov) website. The total estimated lifecycle value of this requirement is XXXXXXX. Fiscal year 2020 Other Procurement Navy funds have been provided under Military Interdepartmental Purchase Request N0002420MP00610. The applicable North American Industry Classification System code is 511210, Software Publishers, with $41.5 million sales size standard.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The existing Siemens software infrastructure manages and utilizes product model data related to Navy ship, carrier, and submarine procurements for the public Naval shipyards (NSYs). Navy systems and delivered data interoperates with contractor systems that support fleet modernization activities. Managed product data is manipulated with two and three-dimensional (2D/3D) computer-aided design (CAD) software and used in downstream manufacturing and repairs, including finite element analysis (FEA), rapid prototype manufacturing (RPM), and computer-aided manufacturing (CAM) activities. Mechanical, human, and process simulation and modeling (using the associated product model data to increase the efficiency of shipyard industrial processes and facility layout) are critical capabilities supported by the existing infrastructure. These functions are available in a unified and configuration-managed information technology environment that interoperate with existing shipyard systems and applications. The existing infrastructure of Siemens NX, Siemens SimCenter, and Siemens Technomatix software products are used to perform product lifecycle management (PLM), product data management, 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 software renewal support is required to align with the existing Siemens infrastructure and interoperate with existing legacy shipyard programs.

b. The Siemens software infrastructure enables the Navy to manufacture parts and components for the aging fleet, which are not available through any other source. The existing Siemens infrastructure provides the Navy with critical engineering, configuration identification and control, reliability monitoring, modification control, and business process data. The Siemens Teamcenter software tracks the NSY and Regional Maintenance Center (RMC) facilities and facility-related equipment, controls, and processes for large industrial machinery used at the NSYs, RMCs, and ship repair facilities (SRFs), conserving energy and avoiding rework costs.

The Siemens NX CAD software is used by engineers to design and optimize NSY, RMC, and SRF facility designs and digitally create and capture 3D product definitions for manufacturing models, tools, fixtures, and parts. The Siemens SimCenter Solid Edge software provides CAD applications that the shipyards use for solid modeling of mechanical design; drawing generation;

creating models for FEA, RPM, and CAM; and integrated advanced finite element pre- and post-processing modeling of components, assemblies, and models. The software is needed to operate sheet metal CAM machines and to generate 2D/3D CAD drawings of solid assemblies, wire frames, sheet metal flat patterns, tool designs, and other FEA, RPM, and CAM models and fabrications for submarine overhaul activities. The Siemens Technomatix software simulates testing of abstracted geometry for meshing, advanced load and boundary condition definitions, material definitions, and support of advanced integrated solutions, such as non-linear analysis, Page 3 of 8 Pages flow analysis, and multi-physics solutions. The tool models and simulates engineering and industrial processes for evaluation and optimization of building layouts, shops, transportation routes, production lines, and processes within the NSYs and RMCs. The existing Siemens software capabilities are essential to the business processes that 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. The Siemens software renewal support products (outlined below) are required to sustain the existing infrastructure and meet the above-described capability objectives.

Item Siemens Software Support Description Quantity

1 NX Support including NX Mach 3 Product Design / Part NX13100 122 2 NX Total Machining / Part NX13430 24 3 NX Assembly Path Planning / Part NX30128 6 4 NX Ship Structure Manufacturing Prep / Part NX30146 6 5 NX Ship Structure PMI Creation / Part NX30214 3 6 NX Piping Fabrication Drawings & PMI / Part NX30215 3 7 NX STEP AP242 / Part NX30619 6 8 NX One-Step Formability Analysis / Part NX30620 10 9 NX DFMPro for NX / Part NX30626 10 10 EB NX CAD Super / NXEB1010 53 11 PLM XML SDK(Software Developer Kit) / Part PX10010 1 12 SimCenter Structures / Part SC13500 26 13 Solid Edge Embedded Client – Floating / Part SE375F 154

14 Teamcenter Integrated Material Management (IMM) / Part

TC030505 50

15 Service Asset Management / Part TC032022 50 16 Teamcenter Open (SDK) / Part TC10405 1 17 Manufacturing Resource Library / Part TCM055010 107 18 Teamcenter Manufacturing Planning Pro / PartTCM055022 54 19 NX CAM Embedded Client / Part TCM55012 65 20 Plant Simulation Professional Concurrent / Part TN75005C 14 21 Process Simulate Human Concurrent / Part TN70030C 15

22 Process Simulate Human Advanced (Jack) Concurrent / Part

TN70031C 15

23 Process Simulate Motion Capture Concurrent / Part TN70032C 15 24 Process Simulate Point Cloud Advance Floating / Part TN70165C 4 25 Process Simulate Concurrent / Part TN7005C 15

US NAVY NAVSEA TC Enterprise Bundle, including not separately priced parts TC032028 Service Technician, TC10410 Teamcenter Integration Framework or TcIF, TC10411 Linked Data Framework or LDF, TC20705 Teamcenter Visualization & Illustration, TC20706 Teamcenter Visualization Analysis Option, TC20707 Visualization Animation Creation, TC20716 Lightweight Package Exchange, TC30600 Teamcenter NX Embedded Client, TC30911 Design Data Exchange, TC30912

Page 4 of 8 Pages

Supplier Program Management, TC30913 Direct Materials

Sourcing, TC30914 Supplier Collaboration Foundation, TC30915 Briefcase Browser, TC30919 Supplier Self Service, TC31301 Simulation Author, TCM55045 Electronic Work Instructions Advanced, and TC050420 Issue Management and CAPA

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.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of events. The brand name COTS software support renewal is needed to sustain the existing COTS Siemens perpetual software infrastructure of the Navy and the Navy mission of sustaining the Navy aging fleet at the NSYs and the Submarine Maintenance, Engineering, Planning and Procurement (SUBMEPP) facilities. Brand name procurement history is outlined in section 11(a).

b. Justification.

(1) Minimum Government requirements. The minimum requirements are identified in section 3.

(2) Proposed sole source contractor. The sole source for the Siemens software support renewal is the OEM, Siemens Government Technologies, Inc. There are no authorized resellers for renewal support. Only the requirement items identified in Section 3 will satisfy the needs of the Navy in sustaining a fully associative 2D and 3D modeling system capable of multi-layer assemblies, kinematic verification, finite element analysis, simulations, and file formats that support 2D and 3D formats. This procurement is necessary to ensure continuity of business operations and sustainment of the Navy fleet. The OEM owns the copyrighted source software with all legal rights, privileges, and ownership control of the software source code. No other source may legally modify or change the software, nor would they have access to the source code to do so.

(3) Discussion regarding cause of the sole source situation. The Siemens software is integrated into the current infrastructure, with the Navy having invested in excess of XXXXXXXXXX in the software and support. Only the identified Siemens software renewal support will satisfy the requirement of sustaining the current software infrastructure. Only the Siemens software possesses the capability of seamlessly operating with the currently installed infrastructure and sustaining the Navy’s fleet and mission. Other brands of software do not meet capability and compatibility requirements. No other brand name software can seamlessly operate with the currently installed infrastructure or meet the requirements or the functionality of the Siemens software identified in Section 3. Market research confirmed that no other products could seamlessly integrate into the Navy enterprise. Replacing and re-engineering the Navy applications at the NSYs and SUBMEPP is not currently feasible or in the economic

Page 5 of 8 Pages interest of the Government at this time. In accordance with FAR 5.2, a sources sought announcement was posted April 9, 2020 on the Contracting Opportunities (beta.sam.gov) website, with a closing date of April 13, 2020. One response was received, from 4D Systems, indicating interest in the requirement but not confirming reseller status. The OEM confirmed that no reseller is authorized to support the existing OEM provided infrastructure, including 4D Systems. The response to the sources sought announcement supports the Government’s determination that no other products meet the current needs of the Navy at this time.

(4) Impact. The brand name Siemens software is critical to systems used by the Navy to model, test, and manufacture replacement parts for the aging fleet. The renewal software support is required to obtain updates, patches, and technical assistance for the perpetual software infrastructure currently in place. Failure to procure the software support renewal could jeopardize the ability of the Navy to manufacturer replacement parts, sustain the fleet, and meet warfighter missions. At this time, the Government has determined that the brand name requirement must be procured to sustain the Navy infrastructure. If the brand name software support renewal were not procured, the flow of critical operations, management, security, and performance simulation information to sustain aircraft carriers, submarines, and the entire Naval fleet and mission would be jeopardized.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

A combined synopsis/solicitation for this requirement will be published on the Contract Opportunities website, as required by FAR 5.2. A redacted copy of this J&A will be posted to the Contract Opportunities website.

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

8. MARKET RESEARCH:

Government market research that was conducted February 2020 through mid-May 2020 included internal discussions, reviews of catalogs, contractor literature, potential sources, and contracts and issuance of a sources sought notice for which no responses were received. The research revealed that no other product currently on the market, other than the brand name Siemens software renewal support, meets the requirements identified in Section 3 and satisfies Government needs. The required items are not available through existing Government contract

Page 6 of 8 Pages vehicles, including Department of Defense Enterprise Software Initiative blanket purchase agreement, General Services Administration Federal Supply Schedule, or the National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement V Government-wide acquisition contract. The required Siemens software renewal support is available only through the open market. There is only one source for the Siemens software renewal support, which is the large business, Siemens Government Technologies, Inc. There are no authorized resellers for the Siemens renewal support. Two or more small business sources have not been identified that can fulfill this brand name requirement. The OEM will be solicited for a quote, and the sole source requirement will be published on Contract Opportunities website.

The Government will request all available discounts for this sole source requirement.

9. ANY OTHER SUPPORTING FACTS:

The NSYs deploy a wide range of Siemens software products today. Existing Siemens software products are deployed at all the NSYs, including the SUBMEPP, which owns the Maintenance and Ship Work Planning (M&SWP) System. The Siemens infrastructure is critical to the M&SWP System used in managing the Navy depot-level process of sustaining the aging fleet.

Additionally, the Ford Class aircraft carriers, Virginia Block V submarines, and Columbia Class submarines are being designed and built, using the critical Siemens software capabilities outlined in Section 3. The digital product models and integrated product manufacturing information are cornerstones for the success of carrier and submarine programs. Public and private integration between the design, support, supply, and business functions that the Siemens infrastructure supports, increases program viability while reducing lifecycle costs of the fleet.

10. LISTING OF INTERESTED SOURCES:

In accordance with FAR 5.2, a sources sought announcement was posted April 9, 2020 on the Contracting Opportunities website, with a closing date of April 13, 2020. There was one response to the sources sought announcement, which the OEM confirmed, was not an authorized reseller for the renewal Siemens software support. Siemens Government Technologies, Inc., the OEM, is the only vendor that can provide the proprietary products to meet the Navy’s needs.

The OEM is the only potential source, based on the recent market research results. There are no resellers. A combined synopsis/solicitation will be published, as required by FAR 5.2 and outlined in Section 6.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

a. Procurement History. The XXXXXXXXXX firm fixed priced competitively awarded open market HC102819C0006 order was awarded to Siemens Government Technologies, Inc. The support expired March 31, 2020. Full and open competition is not available for renewal requirements of Siemens. The OEM requires a sole source open market order for the critical Siemens software renewal support.

b. Actions proposed to remove barriers to full and open competition. The Navy expects to continue to sustain the fleet using the critical Siemens software renewal support for at least the

Page 7 of 8 Pages next five years. At this time, only Siemens can support the existing infrastructure used to maintain Navy vessels. No other brand name software support product 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 selection, then the Government will seek open competition. The Government will continue to review Navy fleet sustainment programs and sources and search the marketplace to determine if alternative solutions exist. If other solutions exist at that time, the requirement will be competed to the maximum extent practicable.

Page 8 of 8 Pages

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: Aimee Maciejewski SIGNATURE: See Separate PDF

TITLE/ORGANIZATION: Management Analyst/NAVSEA MSSD

PHONE: 207-438-1616 DATE: May 11, 2020

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: Acquisitions Branch Head/NAVSEA MSSD

PHONE: 207-438-1622 DATE: May 11, 2020

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Betty A. Burris SIGNATURE: See Separate PDF

TITLE/ORGANIZATION: Contract Specialist/PL8321

PHONE: 618-418-6403 DATE: May 12, 2020

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete, to the best of my knowledge and belief.

Since this justification does XXXXXXXXXX, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

NAME: Gay D. Arnold SIGNATURE:

TITLE/ORGANIZATION: PACA/DISA

PHONE: 618-418-6517 DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Contracting Specialist Lauren O'Neill, 618-418-6403, Lauren.j.oneill.civ@mail.mil.

mailto:Lauren.j.oneill.civ@mail.mil

JUSTIFICATION FOR