PR_1300547126_Redacted_J A.docx

J&A Number: 0224-16-002-00

LIMITED SOURCE JUSTIFICATION

1. Contracting Activity

Naval Sea Systems Command, Naval Surface Warfare Center, Carderock Division (Code 1041).

2. Description of the Action Being Approved

This is a Brand Name Justification to be awarded IAW Small Business consideration solicited on a lowest-price technically-acceptable basis. The proposed action is a new Penguin Computing Hardware/Software/Services contract to be awarded to a federally authorized seller of Penguin Computing products for the upgrade, installation, and integration of software and hardware to the existing computational cluster. This justification document is in accordance with FAR 6.302-1(c).

The requirement was synopsized and publicly posted to the Federal Business Opportunities website on 5 April 2016. The anticipated value of the acquisition is $242,702.08.

3. Description of Supplies/Services

Naval Surface Warfare Center Carderock Division (NSWCCD), Code 1041 is seeking to acquire Penguin Computing hardware, software, and installation services for an existing computational cluster. This acquisition will provide NSWCCD with advanced simulation and analysis capabilities through its High Performance Computing (HPC) assets and infrastructure. The current primary unclassified computational system is over five years old and has entered End-of-Life (EOL) status by the vendor. It also lacks critical intracluster communication technologies (e.g., Infiniband) that have proven to significantly increase performance in other systems.

The current system has had one upgrade already, which has also entered EOL status. Replacement parts are no longer available from the vendor and staff must scavenge parts from other areas to keep the system working. Currently the status leaves us with a large set of unevenly performing computational nodes in varying backend infrastructure that connects computational nodes which can be intelligently extended in the future. In addition to maintaining critical systems in a proper support status, it is expected that this will save energy costs.

If a replacement computational cluster is not procured, the current system, which is both extremely outdated as well as unsupported, will fail and become completely unavailable to NSWCCD engineers. This will result in a work stoppage for many Technical Codes who depend on readily available computational assets for their projects. This is likely to introduce delays and additional costs into the programs, notably the Virginia Class and Ohio Replacement Program.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), “The property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.”

While only one source is capable of manufacturing the required supplies, that source has federally authorized sellers who may also compete for the contract.

5. Identification of Limited Justification Role

The supplies acquired must be compatible with the existing Penguin-manufactured HPC cluster and Scyld ClusterWare. The Scyld ClusterWare is not compatible with non-certified software or hardware. Due to the extensive libraries and use of this system across NSWCCD, any effort to change to a different manufacturer’s system and associated support would not be cost-effective and would negatively impact the Division’s fleet support operations.

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

Penguin Computing is the sole manufacturer of Penguin servers, Scyld ClusterWare clusters, workstations, and peripherals. However, they are not the sole distributor and have a limited number of federally authorized resellers. Penguin Computing was requested to provide a list of federally authorized sellers of Penguin products. Penguin obliged and provided their approved partners (Meadowgate Technologies & Aelius Exploitation Services) from whom quotes may be solicited.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will determine that the proposed order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

8. Actions to Remove Barriers to Competition

NSWC Carderock will likely have reason to solicit similar supplies/services in the future. If other vendors are identified by Penguin Computing as authorized resellers of Penguin supplies, these vendors may be considered in future solicitations. If barriers to compatibility among non-Penguin hardware/software manufacturers can be eliminated at little or no additional cost, non-Penguin supplies may be considered for acquisition in future solicitations.

The circumstances surrounding the need to obtain the required supplies/services without providing full and open competition will be reviewed annually by the Procuring Contracting Officer (PCO).