23DGM74_JA_Redacted.pdf

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SOLE SOURCE – PROCUREMENT OF SERVICES VIA SOFTWARE UPDATES AND SOFTWARE MAINTENANCE AGREEEMENTS
Solicitation number
N0016423DGM74
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This Justification and Approval document outlines a sole source procurement of software updates and maintenance agreements from Cadence Design Systems, Inc. The Naval Sea Systems Command, on behalf of the Naval Surface Warfare Center Crane Division, will award a five-year indefinite delivery, indefinite quantity contract to Cadence for electronic design automation software tools including digital design verification, analog, and physical verification tools. The tools will be used to support programs like Strategic Systems and Trusted and Assured Microelectronics. The total value of the acquisition is estimated at $6,370,811 to be funded by RDT&E and OM&N appropriations. Market research found no alternative tools that could meet all requirements without extensive rework of designs. A Request for Information was posted on SAM.gov with no responses received. The contracting officer will determine price fairness based on previous purchase history and market data.

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CUI

JUSTIFICATION AND APPROVAL

FOR USE OF

OTHER THAN FULL AND OPEN COMPETITION

Requirement Supporting Strategic Systems Program (SSP) and Trusted & Assured Microelectronics (T&AM)

N00164-23-RFPREQ-CR-GXM-0052

Controlled By: Department of the Navy Controlled By: NSWC Crane Code 0221 CUI Category: PROCURE Distribution/Dissemination Control: FED

ONLY

POC: NSWC Crane 0221 Branch Head

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The Naval Sea Systems Command (NAVSEA) Naval Surface Warfare Center, Crane Division (NSWC-CR), Global Department Contracts Branch, Code 0221.

2. Description of the Action Being Approved.

This J&A supports the award of a Firm Fixed Price (FFP), Indefinite Delivery, Indefinite Quantity (IDIQ) contract on a sole source basis to Cadence Design Systems, Inc. (Cadence), 2655 Seely Avenue, San Jose, CA 95134. This contract is for the procurement of services via software updates and software maintenance agreements on Cadence Electronic Design Automation (EDA) software tools.

3. Description of Supplies/Services.

The Government has perpetual commercial licenses agreements with Cadence.

This requirement is for software updates and software maintenance agreements for those licensed Cadence EDA software tools. The software tools include digital design verification tools, analog tools and physical verification tools; and are used in design, evaluation, verification, and debugging of analog, mixed signal, and digital integrated circuits. The Cadence tools are used by NSWC-CR, as well as other sites supporting multiple sponsor programs including SSP and T&AM. These sites include Draper Labs, Naval Information Warfare Center (NIWIC) San Diego, and DCS Technology Inc. Tool requirements include a schematic capture tool, simulation environment, transistor level simulator, mixed mode simulator, behavioral simulator, physical layout tool, place and route tool, limited digital synthesis and implementation tool, design rule check tool, layout

vs. schematic check tool, parasitic extraction tool, code LINT, and a formal (logic equivalency) verification tool. Cadence tools that meet Strategic Systems Programs (SSP) requirements are the Virtuoso suite of analog/mixed signal tools, PVS physical verification tools, QRC extraction tool, Encounter Conformal logical equivalency tool, Incisive Desktop manager tool, Jasper, and Incisive Specman tool.

The total estimated value for this acquisition is $6,370,811. This acquisition is anticipated to be funded with Research, Development, Test, and Evaluation (RDT&E) and Operations & Maintenance, Navy (OM&N) funds.

This contract will have a five-year ordering period.

minimum needs have been verified by the certifying technical and by the certifying technical and requirements personnel. The estimated dollar values per fiscal year (FY) and appropriation are identified below in Table 1.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

J&A Number: CR-23281 Code: 0221 P.R. Number: N00164-23-RFPREQ-CR-GXM-0052

CUI J&A Number: CR-23281 it would take employees time to transfer tools as discussed above and for this time employees would need to be paid money. Furthermore these employees would not be able to complete other tasks in support of the customer while completing these tasks to implement the new software. While the software is being changed no support will be able to be given to the customer.

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

NSWC-CR, Code GXM performed market research to include their own knowledge of the industry. No additional vendors were found that could meet the requirements as discussed herein.

Market research was conducted to locate alternate software tools that could meet the Governm knowledge from working with industry, web searches, knowledge of proprietary information from semiconductor manufacturers, and knowledge from conferences related to the Integrated Circuit industry. For analog/mixed signal designs and some of the digital verification work, there are alternative software combinations that could be used. None of the potential alternative are able to meet all needs of the program and would require extensive modifications of previous design data, as well as creation of compatible design kits. The schedule to modify these files is detrimental to the program and the cost to do so is much greater than the cost of the software tools.

Through these market research efforts, the Government technical activity has determined that Cadence is the only source that can provide the software tools with all of the required capabilities as described above.

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.302-l(d), the Government issued a Request for Information (RFI) on the Government Point of Entry (GPE), System for Award Management (SAM) website at SAM.gov, on 01 June 2023.

The RFI closed on 15 June 2023. There were no responses.

A combined synopsis and solicitation will be posted by utilizing FAR Subpart 13.5, Simplified Procedures for Certain Commercial Items and FAR Part 12, Acquisition of Commercial Items. The combined synopsis and solicitation will be posted on the GPE, SAM.gov website, upon approval of this J&A. Any responses to the synopsis that may be received will be considered for a possible competitive effort.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer will determine the anticipated cost to the Government for the services covered by this J&A to be fair and reasonable.

These are commercial services and it is anticipated that fair and reasonable price determination will be based on a comparison of proposed prices with prices found reasonable on previous purchases, current price lists, catalogs, or advertisements, and market research.

8. Actions to Remove Barriers to Future Competition.

As this is a follow-on for services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A

CUI J&A Number: CR-23281 signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).

Based on the cost and schedule called out in Paragraph 5 herein, only one source is being pursued to provide the services and products at this time.

If another potential source emerges, NSWC-CR will assess whether competition for future requirements is feasible.

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