N61331_124003.pdf

ANNEX 1 - JUSTIFICATION AND APPROVAL

Course/Location Base Year OY1 OY2 ECPINS Operator Maintenance Training in Virgina Beach, VA 4 4 4 ECPINS Operator Maintenance Training in San Diego, CA 4 4 4 ECPINS Operator Maintenance in Sasebo, Japan 2 2 2 Train the Trainer in San Diego, CA 1 1

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements (FAR Part 6.302-1).

5. Rationale Justifying Use of Cited Statutory Authority

ECPINS is the electronic charting system selected by for the SSC and LCU platforms.

The software has received a cybersecurity authority to operate (ATO) and has been integrated in the electronics systems of these platforms. approved the purchase of a program wide license to reduce the total long-term prices to procure licenses for future SSC and LCU 1700 class craft under construction. OSI is the original equipment manufacturer (OEM) of ECPINS.

The ECPINS software is proprietary to OSI and they are the only responsible source for the software. ECPINS has been selected by the LCAC 100 integrator as the Navigation Software in the LCAC C4N navigation system. In FY24, a separate FFP contract was awarded to OSI for a program wide level license of ECPINS software. It would not be cost effective to replace the LCAC 100 navigation system baseline as it would require a change to the LCAC 100 SSC production contract and would impact successful completion of acquisition milestones for the program in FY24and beyond.

As the sole responsible source and licensed distributor of the ECPINS software and training, OSI is the only company with the in-house resident knowledge to accurately prepare and perform the ECPINS training. The assessment and measurement aspects of ECPINS training, consulting, and any related material, is wholly owned by OSI and is not distributed through or provided by anyone but OSI. Because of the uniqueness of NSWC PCD needs, OSI is the only approved supplier of the training materials used in conjunction with its licensed programs for the ECPINS Software.

The Government has sole sourced acquisitions to this business entity for the same or similar training sessions. Most recently, the Government awarded purchase order N61331-23-P-0136 and N61331-21-P-0207 on a sole source basis to OSI using simplified acquisition procedures (SAP) without any other sources emerging or expressing interest. It is more advantageous to the Government to establish a longer-term contract covering more locations and reaching more operators who must take this specialized training. As such, OSI is the only entity that can provide these services meeting the Government’s minimum needs. The alternative of replacing the navigational platform on the entire fleet, would still require user training in short-term and long-term periods. The time to develop and procure a commercially modified replacement for the ECPINS charting system that meets the operational capabilities of the SSC and LCU programs would require an estimated forty-eight (48) months to complete. It is estimated that it will take approximately in engineering, testing, and certification to get the alternate software to meet the fielded baseline. This negatively affects the production timelines and adversely

ANNEX 1 - JUSTIFICATION AND APPROVAL

affects several SSC and LCU interfaces. The expected impact on schedule and cost will prohibit the U.S. Navy to continue ship production as planned because of the critical integration and interface structure of this software. As such, OSI is the only responsible source available to perform these services for the above stated reasons.

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

A sources sought notice was published on the Government point of entry sam.gov website from 1 December to 15 December 2023, per DFARS PGI 206.302-1. The sources sought notice received two responses from It was determined they could not sufficiently meet the needs of this requirement as ECPINS software, and its training material (including curriculum and aids) are proprietary to OSI. In addition, a synopsis was published in sam.gov from 16 December 2023 to 29 December 2023, expressing the Navy’s intent to sole source the award to OSI. No other companies expressed an interest. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than OSI to provide the required software operator and maintenance training.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated prices to the Government for the supplies/services covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC PCD has no plans at this time to compete future requirements for the items covered by this justification. Because of the highly specialized proprietary software requirement for ECPINS, there are currently no means to remove the barrier to full and open competition. As new technologies emerge, the U.S. Navy will assess whether competition for future requirements is feasible.

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior Sole Source Memo was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).

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