N6134018C0021_JA_VMS_licenses_neco.pdf

J&A #: 18-0195

IN REPLY REFER TO:

J&A_18_0195

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Training Systems Division (NAWC-TSD) – Orlando, FL

2. Description of the Action Being Approved.

The Government intends to award a sole source contract to Northrop Grumman Systems Corporation (NGSC) for new Voyage Management Systems (VMS) 7.x/8.x/9.x software licenses.

This is to support the modification of Navigation, Seamanship, and Shiphandling Training (NSST) System Trainers located at Everett, WA, Sasebo, Japan, Yokosuka, Japan, San Diego, CA, Norfolk, VA, Pearl Harbor, HI, Mayport, FL, Rota, Spain and Bahrain. Additionally, new VMS Software Licenses are required to support the new Trainer Devices 20H16, Conning Officer Virtual Environment (COVE) III System, and Junior Officer of the Deck (JOOD) Classrooms to be operated at new Voyage Management Systems Operator Labs located at San Diego, CA, Norfolk, VA, Mayport, FL, and Yokosuka, Japan.

Previously, the VMS Software Licenses had been provided by Northrop Grumman Systems Corporation (NGSC) of Charlottesville, VA under contracts # N61340-14-P-0130 and N61340-16- P-0017. The prior purchase orders were awarded as Firm Fixed Price.

The anticipated contract type is Firm Fixed Price for this effort.

3. Description of Supplies/Services.

This procurement is for a total of three hundred (300) new VMS 7.x/8.x/9.x software licenses.

The Government’s plan is to procure thirty six (36) new software licenses to support the modification of NSST System Trainers and two hundred and sixty four (264) to support the new 20H16 Trainer Devices, COVE III System, and JOOD Classrooms. The total of three hundred (300) new software licenses are to be installed at the sites listed in the above section. In response to multiple at sea incidents, the Government is requiring increased fleet utilization of existing Navigation Seamanship, and Shiphandling (NSS) training sites. To support this increased utilization, additional replications of existing VMS stations are needed. The VMS trainer software configuration is dependent on the underlying proprietary software product baseline of Northrop Grumman-Maritime Systems.

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER TRAINING SYSTEMS DIVISION

12211 SCIENCE DRIVE

ORLANDO, FLORIDA 32826-3224

The new VMS 7.x/8.x/9.x software licenses will be funded in Fiscal Year (FY) 18. The planned funding sources are PMS 339 and IWS6. As such, NAWCTSD intends to use OMN FY18 (current NSST System Trainers) and OPN FY18 (new 20H16 Devices, COVE III System, and JOOD Classrooms) funding to complete this requirement.

See Appendix A for Estimated Dollar Value.

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c) (1), only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

In 2017 the U.S. Navy Surface Fleet had an unprecedented number of incidents at sea including three (3) collisions and one (1) grounding resulting in the cumulative death of 17 U.S. Navy sailors, preliminary repair estimates greater than $600 Million, and the reduced availability of surface ships to meet mission needs around the world. In the aftermath of these four (4) incidents, the U.S. Navy implemented and is continuing to implement sweeping reforms to include changes to training requirements and how simulated training is to be conducted.

The VMS Lab trainer software configuration is dependent on the underlying proprietary VMS software product baseline. NGSC is the sole proprietor of data rights to the VMS source code and will not sell full ownership of these rights. Thus, failure to procure new and upgraded VMS software licenses will prevent the Government from meeting the immediate NSS training requirements. Maintaining a common software baseline configuration is essential for system reliability and maintainability including efficient logistics and engineering support. The increased life cycle cost of supporting the VMS Lab trainer inventory with multiple software configurations could not be recovered through competition of this acquisition. A Government investment has already been made to interface VMS software with the Lab trainers. Any departure from this proven process would substantially increase development costs, life cycle support costs, and impose unacceptable risk associated with an increase in lost training time.

As mentioned in section 3 of this document, the Government intends to use both FY18 OMN and OPN funding to support the modification of NSST System Trainers and the new 20H16 Trainer Devices, respectively. As a result of combining these two requirements through the use of two different types of funds, the Government will approximately save $300,000 by taking advantage of the quantity price discount offered by NGSC.

Additionally, on 23 January 2018, a Sources Sought was issued via Navy Electronic Business Opportunities (NECO) and closed on 08 February 2018, seeking information for potential sources to deliver the required one hundred (100) VMS software licenses. The Government did not receive any response from interested businesses.

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

This VMS software is proprietary to Northrop Grumman and is not available from any other source. Additionally, as part of the procurement process in the previously purchased VMS Software Licenses, the Government had issued multiple Sources Sought and had not received any successful response from vendors capable to meet the Government requirements to satisfy the needs of the NSST System Trainers.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(b), the Procuring Contracting Officer (PCO) is responsible for establishing a fair and reasonable agreed upon price. The PCO will consider historical data, in addition to performing cost and price analysis for this requirement in order to negotiate a fair and reasonable price. Sufficient historical data from previous purchases, as well as a NGSC software license pricing dated 11 July 2017 are available to assist in this determination.

8. Actions to Remove Barriers to Future Competition.

As long as Northrop Grumman VMS systems is the documented US Navy fleet standard, it is probable that future actions to acquire VMS licenses for the current version of the NSS training systems will be sole source actions to Northrop Grumman.

However, a full and open competition to procure NSST Devices to replace the legacy NSST systems (Solicitation # N61340-17-R-0020) has just been awarded under contract N61340-18-D- 0002 and the subsequent delivery order 0001. Delivery Order 0001 to contract N61340-18-D- 0002 will result in a completely new Navigation, Seamanship, and Shiphandling (NSS) software architecture which changes the paradigm of how the Navy currently procures NSS training solutions. The new architecture has been procured with a mix of unlimited and Government purpose rights. This mix of rights will enable the Government to competitively procure follow-on requirements to upgrade or modify existing trainers. Until this new architecture is delivered, the Government NSS paradigm of meeting training requirements through the use of contract vehicles awarded to original equipment manufacturers (OEMs) or those with proprietary rights to the existing trainers will remain. The delivery of the NSS system architecture under contract N61340-18-D-0002 is not required until 29 months after contract award which is not sufficient to support the need for immediate training reform. Notwithstanding the reasons set forth in Paragraph 5, the Government anticipates future NSST procurements will include data rights that will be sufficient to support competition for the types of supplies covered by this document. Additionally, the Government will continually monitor the commercial software marketplace via tradeshows and publications for other potential sources that may be able to meet NSST requirements for capability, reliability, supportability, and performance in the interim period before delivery of the NSS system architecture.

Appendix A Estimated Dollar Value in Thousands

FY17 FY18 FY19 FY20 FY21 Total

OMN 0 $72K 0 0 0 $72K

OPN 0 $528K 0 0 0 $528K

Total 0 $600K 0 0 0 $600K

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name (Printed) Phone No. Date

Requirements Cognizance:

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

APPROVED

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

____________________________________ ______3/14/2018_____________ Date Contracting Officer,