Redacted Final CargoMax.pdf

J&A No.: N102-24-Q-0120

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of the Navy, Military Sealift Command (MSC).

2. Nature of the Action: MSC intends on soliciting and awarding a firm fixed price, single award Indefinite Delivery Indefinite Quantity (IDIQ) contract to Herbert-ABS Software Solutions, LLC, on the basis of other than full and open competition. This contract will acquire commercial engineering services to maintain data files and documentation for onboard stability management and salvage support of the MSC fleet. The resultant award will be made on a sole source basis using the procedures in FAR subpart 13.5.

3. Description of Supplies/Services: This requirement is for Engineering Services support for Onboard Stability Calculations, which are required by United States Coast Guard (USCG).

Changes to a ship’s configuration or use may require revisions to the ship specific software data file and Trim and Stability booklet. The data files and associated Trim and Stability Booklets are reviewed and approved by the American Bureau of Shipping (ABS) on behalf of USCG per NVIC 3-97 for shipboard use. This requirement is not for the software itself, but the engineering services to maintain the files and documentation for these required onboard software systems.

CargoMax is the MSC standard Stability and Load Management Software, and POSSE (Program of Ship Salvage Engineering) is the software used by Navy to support salvage operations. This contract is for the engineering services required to keep and generate ship specific data files used by CargoMax and POSSE software current with configuration changes made to MSC ships. It includes other stability related analysis and documentation required as input into the data files usin g t he CargoMax software and required by USCG and ABS. Primary deliverables are ABS approved CargoMax data files and Trim and Stability Booklets.

The Government requires the contactor to provide these required engineering services for all MSC ships. The estimated value for this five-year contract for commercial services is It is anticipated that each task and/or delivery order will be funded utilizing corresponding Fiscal Year (FY) United States Navy Working Capital Funds (NWCF) and/or Transportation Working Capital Funds (TWCF).

4. Statutory Authority Permitting Other Than Full and Open Competition: 41 U.S.C. § 1901(a)(2), as prescribed by the procedures in FAR subpart 13.5.

5. Rationale Supporting Use of the Authority: CargoMax is an American Bureau of Shipping (ABS) recognized and approved software system and only available through Herbert- ABS Software Solutions, LLC. It is commercially-available software installed on every ship in MSCs fleet and has been approved by NAVWAR for shipboard networks. The specific services required in this instant requirement are the commercially-available engineering services to maintain and update the stability management and salvage data files onboard each MSC ship. In the case of an emergency or a salvage operation with an MSC ship, these critical data files onboard the ship must reflect the most up-to-date model and reflection of the ship for accuracy. This requirement is established by ABS and USCG.

The maintenance and updating of this data with CargoMax requires authorized, OEM credentialed, and proprietary services through Herbert-ABS, the data-rights holder for CargoMax. Herbert-ABS is the sole provider of the CargoMax software authorized users to perform the required tasks. The sole-source proprietary nature of this requirement was confirmed through the posted RFI and other market research.

The engineering services required for the resultant contract depend on an existing contract for CargoMax Software. The CargoMax software licenses and maintenance of the software are covered under an N6 contract, HC102824P0022, and while this requirement is not for the software itself, the engineering services for the instant requirement are based on using this underlying proprietary software. CargoMax and POSSE utilize the same ship data files for daily operations by ship forces and USN Supervisor of Salvage and Diving (SUPSALV) for salvage response. The implementation and use of this software and related data files are required to keep MSC ships certified to operate afloat, and is therefore critically necessary for the MSC fleet. MSC ships are launched from production with this proprietary software already installed. There are no other approved stability management software alternatives at this time that meet the Government’s requirements.

Because the CargoMax software licenses and software maintenance requirements are covered under a MSC contract, HC102824P0022, the required CargoMax data files maintained through the required engineering services must both conform to the fit/function of the current software in place already installed on the ships and additionally conform to the contractual requirements of HC102824P0022. The required CargoMax software data files are obtained solely through Herbert- ABS Software Solutions LLC, to the exclusion of all others. Finally, only properly credentialed and authorized users can input or manage complicated trim and stability management data into files in CargoMax software. Market research revealed that Herbert-ABS is the sole provider of the CargoMax authorized users to perform the required tasks using CargoMax.

The software underlying the required engineering services covered in this justification is already installed and in use in the MSC Fleet. Thus, consideration of non-authorized users of CargoMax would not only disrupt the instant requirement for the proprietary services by allowing non-authorized users to input data into and manage complicated shipboard software which could cause inaccurate data to exist and thus negatively affect a vessel’s trim and stability and lead to damage or loss of the vessel; but it may also involve the use of another underlying software solution and associated services, which would come at a substantial duplication of cost to the government. This increased cost would include the cost to purchase new software, install new software on all ships, conduct testing, and receive approval for a software alternative through the respective authorities, and then retrain the entire workforce on new software. This duplication is unreasonable and not viable.

Further, use of any other solution would cause unacceptable delays and grounding of ships that require these data and working files in order to be operational at sea. MSC cannot afford such delays to mission or such wide-scale inoperability of its ships.

6. Description of Efforts Made to Solicit Offers from as Many Potential Sources as Practicable: A sources sought notice was posted to SAM.gov from 24 January 2024 through 7 February 2024 under Notice ID N3220524Q0120 in order to engage with industry and survey the potential for any alternative sources. Four responses were received, but none of the potential contractors are capable of fulfilling the requirement because they do not have the proper authorization or credentials to work or update the CargoMax files. In addition, the Government intends to issue a synopsis on SAM.gov for this requirement with the intent of awarding a firm-fixed price sole source contract with widest distribution via the GPE.

7. Determination of Fair and Reasonable Cost: The Contracting Officer will determine the contract prices to be fair and reasonable using price analysis techniques described in FAR 13.106- 3(a).

8. Actions to Remove Barriers to Future Competition: Due to the proprietary nature of the CargoMax Software and Herbert-ABS being the only source for both the software and for authorized users, it is unlikely that there will be future competitors. Nevertheless, periodic requests for sources sought through SAM.gov will be issued to determine if new entrants to the market are available to compete on follow on requirements. Should the installed software on MSC ships ever change in the future, this requirement for CargoMax data files will be reviewed for potential competition.

The contracting officer has retained and reviewed the previous J&A N102-19-R-7003, and this previous J&A is referenced herein and available in the file for the approving official as required by DFARS 206.303-2 as required by DFARS 213.501. In the previous J&A, MSC stated “it is unlikely that there will be future competitors. Periodic requests for sources sought through FEDBIDOPPS will be issued to determine if new entrants to the market are available to compete on follow on requirements.” In accordance with the previous J&A, another assessment of the market was completed through the GPE to determine if there were any available competitors. The RFI for the instant requirement did not reveal any capable competitors. MSC will continue its efforts to maximize competition in future requirements.

CERTIFICATION AND APPROVALS

TECHNICAL AND REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance that 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/REQUIREMENTS COGNIZANCE:

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTTNG OFFICER CERTIFICATION:

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

Signature Name (Printed) Phone No. Date

COMPETITION ADVOCATE:

Upon the basis of the above justification, I hereby recommend approval as Director of Contracts, of the solicitation the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority cited in Section 4 above.

Signature Name (Printed) Phone No. Date