831914262_-_JA_Redacted.pdf

LIMITED SOURCE JUSTIFICATION & APPROVAL (J&A)

FEDERAL ACQUISITION REGULATION (FAR) PART 8 ACQUISITIONS

Multiple Award Schedule (MAS)/Multiple Award Contract Orders under MAS/General Services Administration Schedules (GSA)/Federal Supply Schedules

(FSS) FAR 8.405-6

Purchase Request Number: N4523A19MP039V3 Contract Number: To Be Determined (TBD) Task/Delivery Order Number: TBD Procurement Title: Document Management and More (DM2) Services Estimated Value:

Limited Source Authority: FAR 8.405-6 (a)(1)(i)(B)

LIMITED SOURCE JUSTIFICATION

J&A Number: JA19-062

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate hereby approve this limited source justification in accordance with FAR 8.405-6(a)(1)(i)(B).

The acquisition referenced herein is conducted under the authority of the Multiple Award Schedule Program.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requesting Agency: Puget Sound Naval Shipyard 1400 Farragut Ave. - Bldg. 850-A, 5th floor Bremerton, WA 98314-5001

b. Contracting Activity: Defense Information Systems Agency/Defense Information Technology Contracting Organization-SCOTT-PL8312

2300 East Drive Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this requirement is to procure limited sources DM2 services for Puget Sound Naval Shipyard (PSNS). This procurement will be awarded as a firm fixed priced (FFP) delivery order via the GSA Federal Supply Schedule (FSS). This delivery order action will provide support for the legacy DM2 service, which is required for three years because the DM2 service cannot be supported by the replacement document management software. There is one authorized service provider on the GSA FSS – Hexagon US Federal (formerly known as Intergraph Government Solutions Corporation).

b. The period of performance (PoP) will be March 26, 2019 to March 25, 2020 for the base period and will have two one-year option periods. The total estimated cost is . Fiscal year 2019 Operations and Maintenance, Navy funds

Document Management and More (DM2) Services Tracking Number: 831914262-JA19-062

Page 2 of 6 Pages are provided under Military Interdepartmental Purchase Request number N4523A19MP039V3. The applicable North American Industry Classification System code is 541511, Custom Computer Programming Services, with a size standard of $27,500,000.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. PSNS requires the procurement of DM2 Services to provide continuing integration and support of the DM2 system and programming services for Oracle, Microsoft Visual Basic, and other systems as directed.

b. A breakout of the requested skill levels for the professional services are listed below:

Labor Category Hours

Subject Matter Expert IV - Base 1,800 Subject Matter Expert IV – Option Period 1 1,800 Subject Matter Expert IV – Option Period 2 1,800

4. IDENTIFICATION OF LIMITED SOURCE AUTHORITY AND DEMONSTRATION OF

CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Circumstances Justifying Limiting the Source. FAR 8.405-6 (a)(1)(i)(B), only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

(b) Description of the Justification. PSNS is currently using DM2 services to manage the life cycle of documents, Objective Quality Evidence (OQE) and Quality Assurance (QA) Fleet Forms that are required for the repair and maintenance of naval ships and submarines. It is also used with Advanced Industrial Management (AIM) New Technology (NT) and AIM eXPerience (XP) to manage the availabilities along with assisting with the certification of documentation and managing Submarine Safety (SUBSAFE) program at PSNS & Intermediate Maintenance Facility (IMF). The required DM2 support is unique because DM2 is proprietary software, manufactured by Integraph Government Solutions Corporation (now known as Hexagon US Federal), that has been customized to interface with shipyard applications. Hexagon US Federal is the only source legally authorized to modify the source code for DM2 software. There are no resellers of the DM2 software. As a result, no other contractor is able to provide the requirement for DM2 support.

(c) Justification:

(1) Minimum Government requirements. The Government requires the renewal of DM2 services to support DM2, which is a document tracking and creating tool. DM2 and Shipyard Planning Execution and Tracking Tool (SPETT) have two different ways of completing the needed workflows for the data elements. The two software solutions are not compatible with each other.

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(2) Proposed sole source contractor. Hexagon US Federal

(3) Discussion regarding cause of the limited source situation. DM2 is a proprietary and customized Hexagon product and Hexagon US Federal is the only contractor with the knowledge and skills to support it.

(4) Demonstration of limited source. DM2 is proprietary software, manufactured by

Hexagon US Federal, the Original Equipment Manufacturer (OEM), which has been customized to interface with shipyard applications. Only Hexagon US Federal will be able to satisfy the program’s requirement for their service needs. Hexagon US Federal owns the copyrighted source code with all legal rights, privileges, and ownership contained therein. No other source may legally modify or change the software, nor would they have access to the source code to do so. Hexagon US Federal owns the copyrighted source code and is the only source that can legally modify or change the software. Hexagon does not authorize any resellers to provide DM2 software support. As such, Hexagon is the only source that can meet the Government’s requirement.

(5) Procurement discussion. The DM2 software has proprietary data within the applications, which will restrict the competition of this contract to just Hexagon US Federal. Over the past 12 years, PSNS has invested approximately $2.6M in DM2 services.

(6) Impact. PSNS is currently using DM2 services to manage the life cycle of documents, OQE and QA Fleet Forms that are required for the repair and maintenance of naval ships and submarines. It is also used with AIM NT and AIM XP to manage the availabilities along with assisting with the certification of documentation and managing Submarine Safety (SUBSAFE) program at PSNS & IMF. These documents are essential in helping to ensure the safety of U.S. Navy personnel. As stated above, DM2 is proprietary to Hexagon and no other vendor can modify the source code of DM2. Thus, awarding to a vendor other than Hexagon US Federal would result in our inability to utilize DM2 and would result in probable loss or corruption of these documents, which could lead to possible neglect of naval ships and submarines and thereby endangering the welfare of individuals and jeopardizing the PSNS mission.

5. BEST VALUE DETERMINATION:

The Contracting Officer has concluded that the acquisition strategy to issue a delivery order against Hexagon US Federal’s GSA FSS, 47QTCA-18-D-003G. This will represent the best value (as defined in FAR 2.101) and result in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs. Although GSA has already negotiated fair and reasonable pricing, as the rates have been established within the GSA FSS schedule, additional discounts will be requested. In addition, the contracting officer will determine whether the anticipated cost is fair and reasonable by completing a price analysis.

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6. MARKET RESEARCH:

Based on current market research, dated January 2019, it has been determined only the aforementioned brand-name product and/or product support, DM2 services, can fully support the Government’s need. This requirement is for proprietary products and/or product support and no competitor functional replacement products exist in the market at this time to meet the Government's need. The Government will continue to conduct market research to determine if there are changes in the market place that would enable future competitive actions, i.e. there are similar products and/or product support in the marketplace that provides the same functionality, the original equipment manufacturer releases ownership rights of product, or it is economically feasible to procure a new system.

7. ANY OTHER SUPPORTING FACTS: None

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE BARRIERS THAT LED TO THE

RESTRICTED CONSIDERATION:

a. Procurement history.

Contractor Hexagon US Federal Contractor Size Other Than Small Business

Contract# HC1028-18-F-0488

Contract Amount Contract Type FFP, limited source brand name Period of Performance 26-Mar-2018 to 25-Mar-2019

Contractor INTERGRAPH GOVERNMENT SOLUTIONS

Contract# HC1028-16-F-0767

Period of Performance 26-Sep-2016 to 25-Mar-18

Contract# N00104-12-A-Q347 - 0016 Contract Amount

Period of Performance 26-Sep-15 to 25-Sep-16

Contract# N00104-12-A-Q347 - 0014

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Period of Performance 26-Sep-14 to 25-Sep-15

Contract# N00104-12-A-Q347 - 0010 Contract Amount

Period of Performance 26-Sep-13 to 25-Sep-14

b. Future requirements will be evaluated to determine whether an alternate brand/source or service provider can be used. However, it is unlikely that this requirement can be broken out to any other service provider except the OEM.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

No written AP is required, as it does not meet the required dollar threshold.

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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: SIGNATURE: See separate PDF

TITLE/ORGANIZATION: Management Analyst / MSSD

PHONE: DATE: 02/14/19

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: SIGNATURE: See separate PD

TITLE/ORGANIZATION: Supervisory Management Analyst / MSSD

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

NAME: SIGNATURE: See separate PD

TITLE/ORGANIZATION: Contracting Officer

PHONE: DATE: February 14, 2019

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 not exceed $13.5M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

NAME: SIGNATURE: See separate PD

TITLE/ORGANIZATION: PACA/DISA

PHONE: DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO MRS.

HOLLY SANDERS AT HOLLY.E.SANDERS.CIV@MAIL.MIL.

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: SIGNATURE:

TITLE/ORGANIZATION: Management Analyst / MSSD

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: SIGNATURE

TITLE/ORGANIZATION: Supervisory Management Analyst / MSSD

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

TITLE/ORGANIZATION: Contracting Officer

PHONE: DATE: February 14, 2019

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 not exceed $13.5M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

TITLE/ORGANIZATION: PACA/DISA

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