PL 2216 SER410-003 JA BN MSSD-12317 CM-01 - redacted.pdf

DEPARTMENT OF THE NAVY

PORTSMOUTH NAVAL SHIPYARD

PORTSMOUTH NH 03804-5000 IN REPLY REFER TO

Ser 410/003

J&A Number: PL-2216

P.R. Numbers N0002424RX00525

DEPARTMENT OF THE NAVY

LIMITED SOURCE JUSTIFICATION

Upon the basis of the following justification, I as Contracting Officer, hereby approve use of other than Full and Open competition for the proposed contractual action pursuant to the authority of FAR 6.302-1 (c), Application for Brand Name.

1. Contracting Activity

The contracting activity is the Naval Sea Systems Command Contracting Division (Code 410), Portsmouth Naval Shipyard (PNS), Kittery, ME. The requiring activity is NAVSEA 03S Digital Industrial Operations (DIO).

2. Nature and/or Description of Action Being Approved.

This Justification and Approval (J&A) authorizes and approves a Brand Name, Firm Fixed Price (FFP) commercial award for Siemens Corporation via Siemens Government Technologies, Inc. (Siemens Cage 0DZG1) and any other authorized resellers, for the procurement of SIEMENS PLM/TeamCenter - 24M-10 software (SW) and maintenance that will be used to support all four shipyards.

This follow-on individual acquisition will be conducted in accordance with procedures located in FAR 13.5 (Certain Commercial Items) and FAR 12 (Acquisition of Commercial Items).

3. Description of the Supplies or Services Required to Meet the Agency’s Needs (including the estimated value).

The requirement is for one-year software licensing with normal technical support, sold as a single, non-severable software package. Government’s need is to acquire renewal of SIEMENS PLM/TeamCenter - 24M-10 for Digital Industrial Operations (DIO) at Norfolk, VA. This will support NAVSEA Maritime Systems and the four shipyards.

In order to meet this need, proprietary, commercial off-the-shelf SIEMENS PLM/TeamCenter - 24M-10 must be procured. Siemens is the Original Software Developer (OSD), and is the only supplier able to provide the specific software updates and patches that are developed and provide the required technical support. This procurement will be awarded as a FFP contract to the (OSD). . Fiscal Year 2024 Operation and Maintenance (O&MN), Navy funds are provided on funding document N0002424RX00525-00. The period of performance is Date of award (DOA) plus 12 months.

Included in the market research is a statement from a Siemens representative stating that this particular software package is only available under the Siemens Government Technologies division of Siemens and is only authorized through few resellers. This is a Brand Name requirement.

4. Identification of the Justification Rationale

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. The statute authority permitting other than full and open competition is FAR 6.302- 1(a)(2)(ii); supplies may be deemed to be available only from the original source, or a limited number of sources in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to another source would result in substantial duplication of costs to the Government that is not expected to be recovered through competition.

The item is peculiar to one manufacturer. Procuring SIEMENS PLM/TeamCenter - 24M-10 is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet the agency’s needs.

SIEMENS PLM/TeamCenter - 24M-10 has been established in the Navy’s infrastructure, and continued procurement of the product is required to obtain the necessary upgrades for the current infrastructure. SIEMENS PLM/TeamCenter - 24M-10 is only available from the aforementioned OEM or its authorized resellers. The OEM owns the copyrighted product with all legal rights, privileges, and ownership contained therein. No other contractors or distributors can legally obtain access to the product or make copies, because copyrights and patent laws protect this OEM’s product. No other source may legally modify or change the product, nor would they have access to the source code to do so.

SIEMENS PLM/TeamCenter - 24M-10 is essential to the Government’s requirements. This proposed acquisition is to procure the OEM’s products for the environments at NAVSEA.

Developing and testing another manufacturer’s product, in addition to user training time and costs, would not be cost advantageous to the Government. Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition, and cause unacceptable delays in fulfilling the agency’s requirements.

5. Determination by the Ordering Activity Contracting Officer that the Order Represents the Best Value Consistent.

Siemens product lifecycle management DBA Siemens Corp. engineer software and its related services that are primary finite and are only developed and maintained by the OSD, and has been deployed and used by all four shipyards. The Navy is driven to use this software to make use of the Government owned technical data that is already developed with OSD. The Navy continues to utilize this software because of the extensive archival model and stored files that would pose a problem and additional costs if it were to be replaced. Although there are other suite applications on the market the conversion of existing technical data would take thousands of hours to re-create, modify and validate. Even though this can be accomplished, the costs in terms of real dollars and lost Mission readiness would be almost incalculable. Additionally, conversion programs do not 100% convert everything accordingly, not only cost-prohibitive, the reliability of a new and untested product is an unacceptable risk.

“The contracting officer has determined that this purchase order represents the best value and results in the lowest overall cost alternative to meet the Navy’s needs.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

At present, Siemens has a limited number of resellers authorized to supply this to the government at such a substantial reduction in price; it owns the proprietary data rights to the software and the software engineering environment in which it creates

Based on current market research dated Jan 2024, it has been determined only the aforementioned brand name product and/or product support, SIEMENS PLM/TeamCenter - 24M-10, can fully support the Government’s needs. No competitor functional replacement products exist in the market at this time to meet the Government's needs. The Government will continue to conduct market research to determine if there are changes in the market place that would enable future competitive actions; e.g., there are similar products and/or product support in the marketplace that provide the same functionality, releases ownership rights of product, or it is economically feasible to procure a new system.

7. Any Other Facts Supporting The Justification.

OSD has the requisite technical knowledge and experience to perform all required software updates to the program logic and to ensure that the software is in compliance with US Navy and DOD Information Assurance guidelines.

The Contracting Officer will determine pricing for the software licenses are fair and reasonable. A complete analysis of the contractor’s price will be performed in accordance with applicable FAR provisions. Commercial price lists, procurement history and other available pricing information will be reviewed. Posting this requirement on Sam.gov will provide the government with competition and offer any other authorized resellers the chance to participate in this requirement. A determination of fair and reasonable pricing as required by statute and regulation will be made by the Contracting Officer.

8. A Statement Of The Actions, If Any, The Agency May Take To Remove Or Overcome Any Barriers.

The Government will continue to conduct market research to determine if there are changes in the market place that would enable future competitive actions and to ensure that the future acquisition strategy matches the market conditions.

The Contracting Officer will post a notice of intent to fulfil the Government’s requirement and the associated Justification and Approval on GPE SAM.gov. Siemens’ corporate policy states that any licensed partners who are authorized to resell Siemens software must be managed by Siemens PLM software. The contracting office will be notifying them of this requirement, and it may produce future opportunity for a reseller to be licensed down the road for SIEMENS PLM/TeamCenter - 24M-10.

For the reasons set forth in Paragraph 5, there are no plans at this time to change the software being procured under this contract. No additional market research to find equal or equivalent software because it is not practical for the reasons discussed above for anyone other than Siemens or Siemens resellers to satisfy the Government’s requirement. The Portsmouth Naval Shipyard contracting department is not in a position to remove barriers that were imposed by the initial acquisition. A process that was intensely competed, and once approved and awarded, dictates that we must maintain this system with the same tools that were originally used. If another potential source emerges, we will assess whether an equivalent software is feasible.