MasterCam_LSJ_Redacted.pdf

USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN ACQUISITION

UNDER THE SIMPLIFIED ACQUISITION THRESHOLD

I. BACKGROUND:

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE:

The nature of this action is to procure Brand Name Mandatory MasterCam Software Renewal for Puget Sound Naval Shipyard & Intermediate Maintenance Facility (PSNS&IMF). This procurement will be awarded as a firm-fixed-priced delivery order to Sole Source OEM authorized reseller MLC CAD Systems, LLC. The estimated cost is $51,669. Fiscal Year 2023

Operation and Maintenance, Navy funds are provided on funding document

N4523A23RC008G3. The period of performance is 01 Jan 23 to 31 Dec 23 with a required delivery date of 01 Jan 23

III. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION IS BASED ON THE FOLLOWING (select all that apply):

A. _X__ ONLY ONE RESPONSIBLE SOURCE (select all that apply):

1. ___ RESTRICTIVE RIGHTS. The source has established proprietary rights, limited rights in data, patent rights, copyrights or secret processes in the item or service required.

2. ___ EXCLUSIVE LICENSING AGREEMENTS. The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

3. __X_ OTHER REASONS.

MasterCAM is computer aided manufacturing software that allows the operator to create and utilize three dimensional digital models to produce the alpha numeric code necessary to operate computer controlled machine tools. The multiple axis routers will serve as the machine tools used to fabricate various rubber/plastic tiles used on the upcoming Virginia (VA) class availabilities as well as other tasks. These machine tools are mission critical in creating and refurbishing parts and tooling for the repair of surface craft and submarines. Approximately 30 machines utilized on a daily basis require the output from MasterCAM to do their jobs. The removal of MasterCAM would render these machine tools useless and leave PSNS incapacitated.

The Naval Shipyards have invested over $250K in integrating MasterCAM software and support since fiscal year 2012. As a result, no other similar products can seamlessly integrate into any of the Navy's infrastructure without making significant changes to the baseline. Other software may provide similar functionality but without rewriting the application source code to integrate other brand name software solutions into existing Mastercam-centric environments, the competing programs would not be functional. Mastercam offers ease of integration, backward compatibility, interoperability and the configuration and maintenance of the existing hardware is critical to PSNS to access existing data collected by Mastercam. Introducing alternative software would not meet NNSY’s need for interoperability. Non-renewal of MasterCAM software support could cause a critical impact on the process of repairing and maintaining crucial ship components, causing a loss in productivity and delay the mission. If MasterCAM software support is not procured, PSNS will have to transition to a different cutting machine setup, resulting in high costs and time that may not be recouped. The government estimates that to procure an alternate solution involving hardware/software replacement, employee re-training and application re-development would cost approximately $1M.

Master CAM is the only company capable of maintaining this software’s source code. Use of non-compliant/non-authorized OEM products will void current support contract for this product.

Although Mastercam software and licensing is available competitively in NASA SEWP V only

MLC CAD Systems, LLC is an authorized Sole Source provider for Washington State which is where PSNS is located (see Encl 3a).

Market research was conducted to identify availability via Department of the Navy Enterprise

License Agreement (DON-ESL) Program Government-wide acquisition contracts, Department of Defense Enterprise Software Initiative (DOD-ESI) Government-wide acquisition contracts, National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement

(NASA-SEWP) Government-wide acquisition contracts, General Services Administration (GSA)

Government-wide acquisition contracts, the Open Market , Department of Defense Approved

Products List (DODIN-APL), Army Computer Hardware Enterprise Software and Solutions -

Information Technology (ARMY-CHESS-IT) Government-wide acquisition contracts, and other potential sources.

Based on current market research dated Oct 2022, it has been determined only the aforementioned brand name MasterCam Software Renewal can fully support the Government’s needs. No competitor functional replacement products exist in the market at this time to meet the Government's needs. The Government will continue to conduct market research to determine if there are changes in the market place that would enable future competitive actions; e.g., there are similar products and/or product support in the marketplace that provide the same functionality, Master CAM releases ownership rights of product, or it is economically feasible to procure a new system.

B. __ BRAND NAME. Item required must be a brand name product, or feature of a product, particular to one manufacturer.

C. ___UNUSUAL AND COMPELLING URGENCY. The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

Urgent requirements are supplies or services that will result in a work stoppage, or are mission critical and the routine processing time would result in injury to the Government. The determination that the procurement for the above item/service is an urgent and compelling requirement is based on the following:

1. Date on which the requirement was first identified:

2. Required delivery date/period of performance:

3. Explanation of why delivery/commencement of services by the date mentioned above is required:

4. If appropriate, include any additional pertinent information:

IV. CERTIFICATIONS/APPROVALS:

A. Technical / Requirements Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief.

Signature Name (Printed) / Phone # Date

B. Contracting Officer Approval:

Signature Name (Printed) / Phone # Date