Redacted - JA Sole Source - CAM Software.pdf

Control Number: CUI

CUI

(Source Selection information - See FAR 2.101 and 3.104-4)

APR 2021

ATTENTION

Use this space to indicate categories, limited dissemination controls, special instructions, points of contact, etc., if needed.

Justification Review Document For Sole Source - FAR Part 13.501

Program/Equipment: ESPRIT Computer Aided Manufacturing (CAM) Software Maintenance

Controlled by: Army

Controlled by: Army Contracting Command-New Jersey

CUI Category(ies): General Procurement and Acquisition

General Proprietary Business Information

Limited Dissemination Control: FED ONLY

POC:

margaret.heyrich Highlight

ESPRIT Computer Aided Manufacturing (CAM) Software Renewal

All individuals handling this information are required to protect it from unauthorized disclosure.

Handling, storage, reproduction, and disposition of the attached document(s) must be in accordance with 32 CFR Part 2002 and applicable agency policy.

Access to and dissemination of Controlled Unclassified Information shall be allowed as necessary and permissible to any individual(s), organization(s), or grouping(s) of users, provided such access or dissemination is consistent with or in furtherance of a Lawful Government Purpose and in a manner consistent with applicable law, regulations, and Government-wide policies.

Standard Form 901 (11-18)

Prescribed by GSA/ISOO | 32 CFR 2002

ATTENTION

Sole Source Justification and Approval Review Document Under FAR 13.501*

(*Format follows FAR 6.303-2, but modified to reflect FAR subpart 13.5 procedures)

Program/Equipment: ESPRIT Computer Aided Manufacturing (CAM) Software Maintenance

Authority: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name ) under the authority of the simplified procedures for certain commercial items.

Amount: including all Options

Prepared by:

Title: Contract Specialist DSN:

Date Reviewed: 12/14/2021 E-Mail:

Contracting Officer:

Typed Name: DSN:

Date Reviewed: 12/21/2021 E-Mail:

Technical Representative:

Typed Name: DSN:

Title: Supervisory Chemical Engineer Date Reviewed: 12/21/2021

Requirements Representative:

Typed Name: DSN:

Title: Lead Procurement Coordinator, FCDD-ACW Date Reviewed: 12/21/2021

Reviews

I have reviewed this justification and have no legal objections.

Legal Counsel

Typed Name:

Sole Source Justification and Approval

Under FAR 13.501

1. Contracting Activity: U.S. Army Contracting Command - New Jersey

2. Description of Action: Weapons and Software Engineering Center (WSEC) Benet Laboratories requests a Firm-Fixed-Price (FFP) contract with Hexagon Manufacturing Intelligence, Inc. for maintenance of ESPRIT Computer Aided Manufacturing (CAM) Software. Research, Development, Technology, and Engineering (RDT&E) funds will be used for this contract.

3. Description of Supplies/Services:

This is for ESPRIT CAM Software Maintenance Renewal. The contractor shall provide any and all software updates and maintenance, technical support, and service patches.

This software is required for the generation of complex part programs at WSEC Benet Laboratories and Watervliet Arsenal,NY.

The contractor shall provide maintenance for software upgrades on WSEC Benet Labs current ESPRIT Licensing as described below:

(4) 25-6934101 - 26-6058701

(1) E1567301

(1) E2573001 margaret.heyrich Highlight margaret.heyrich Highlight

(1) E2573002

(1) E2573003

(1) E2573004

(1) E6934001

(1) E7934301

(1) E9454101

(1) E9454201

(3) MSP5450401 – MSP5464201

(1) S2572901

Base Year: Value:

Option Period 1: Value:

Option Period 2: Value:

Option Period 3: Value:

Option Period 4: Value:

Total:

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name ) under the authority of the simplified procedures for certain commercial items.

5. Reason for Authority Cited:

WSEC Benet Laboratories is currently using ESPRIT CAM Software for part program development and knowledge based management systems. This software is used to assist Benet customers for production planning and manufacturing. A database of digital machine environments, cutting tools and machine processes has been developed utilizing ESPRIT’s Knowledge Base Manager (KBM) functionality over the last four (4) years. No other CAM software offers the same data management solutions as ESPRIT.

Furthermore, the data that has been compiled in ESPRIT’s KBM over the last four (4) years is not transferable to alternate knowledge based management systems.

Hexagon Manufacturing is the sole creator, developer and distributor of ESPRIT CAM software, thus there is no competition providing ESPRIT CAM software. During market margaret.heyrich Highlight margaret.heyrich Highlight margaret.heyrich Highlight margaret.heyrich Highlight margaret.heyrich Highlight margaret.heyrich Highlight research the potential CAM software alternatives were found to not meet or exceed ESPRIT‘s capabilities managing complex solutions for multi-tasking equipment, performing full and detailed simulation of machine environments, automated feature recognition, or management of a user knowledge base compatible with WSEC Benet methods in use/ reuse/optimization of user data. No other CAM solution provided options for a customized interface allowing user to created automated feature recognition and process selection engines. Since ESPRIT is only available from the manufacturer, the recommendation is a sole source contract to Hexagon Manufacturing.

ESPRIT is also an essential tool for the machinist and engineers at Benet Laboratories.

It supports the programming needs for all advanced machine tools currently on the shop floor. ESPRIT provides a platform for the capture and reuse of critical process knowledge and has proven to be a reliable resource for production planning and estimating. Benet has invested in training approximately ten (10) users to develop advanced skillsets in ESPRIT CAM programming. Benet’s IT department has developed a skillset in managing servers that support ESPRIT software as well. The cost to retrain personnel and redevelop ESPRIT data management systems would exceed .

This estimate does not include the cost of delayed projects due to the introduction of new software.

Category Approximate cost -New software acquisition

-New software licenses

-Redevelopment of SMS modules to use new software

Training on new software IT costs to install new software at Benet

Uniquely, ESPRIT has also been a critical part of the development of the Smart Machining Solution for the past four (4) years. ESPRIT allows the many parts of the Smart Machining Solution to work together. This ability has been in development for the past four (4) years. If a different CAM software other than ESPRIT is used, it would cause the potential failure of the Smart Machining Solution. This would cause the loss of an approximately of development effort over the last four (4) years.

Category Approximate cost over the last 4 years Labor across Benet and developers including the below tasks:

-Labor cost of developers of the 5 modules of SMS which all tie into Esprit for functionality

-Labor cost for Benet Engineers who assisted and tested the

SMS

- Labor cost of Benet technicians developing machining process to be included in the Knowledgebase Manager in

Esprit

Materials cost including the following:

-Software license costs

-Training on software

-Tooling for testing of SMS modules in a real world environment at Benet

The current estimated cost of licenses and maintenance for ESPRIT CAM software for the next five (5) years is estimated to be and allow the efforts such as the Smart Machining Solution and support of large caliber cannon parts to continue to be supported without any delay.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201 and any bids or proposals received shall be considered.

7. Actions to Increase Competition: No actions can be taken to increase competition due to the manufacturer, Hexagon Manufacturing Intelligence, Inc. (formerly DP Technology), being the sole manufacturer, developer, and provider of ESPRIT CAM Software. In addition, the software is proprietary to Hexagon Manufacturing.

8. Market Research: The technical community has conducted market research through RFIs posted on CHESS, past purchases, internet sources, and contacting other Government Agencies. As a result, it has been determined that Hexagon Manufacturing is the sole manufacturer, developer, and provider of ESPRIT CAM margaret.heyrich Highlight proprietary software. There is currently no other software that can meet the requirements of WSEC Benet Laboratories and no resellers available.

9. Interested Sources: To date, no other sources have expressed interest in the acquisition.

10. Other Facts:

a. Procurement history

WSEC Benet Software maintenance history:

December 2011, Government Purchase Card, $13,618.00 November 2012, Government Purchase Card, $16,486.00 January 2014, Government Purchase Card, $18,629.00 November 2014, Government Purchase Card, $20,158.00 December 2015, Government Purchase Card, $17,735.00 December 2016, Government Purchase Card, $22,180.00 June 2019, Government Purchase Card $9,000.00 September 2019, Government Purchase Card $5,300.00

Contract number, awarded contractor:

W15QKN-17-A-0018 0001 issued in September 2017 to D.P. Technology Description of requirement: BPA for software services Method of procurement: Sole Source BPA Contract type: FFP BPA Delivery requirements: Varies with each order Total awarded amount: $22,180.00 Period of Performance: five (5) years (through 27 October 2021) Number of Offerors: 1 Source Selection Method: N/A Basis for fair and reasonable pricing:

Commercial Pricing

Contract number, awarded contractor:

W15QKN-19-C-0022 with Options Issued to D.P. Technology Description of requirement: ESPRIT software maintenance Method of procurement: Sole Source

Contract type: C Type contract Delivery requirements: Varies with each Option Total awarded amount: $171,300.00 Period of Performance: Base with two (2) Options (23 Jan 2019 – 17 Dec 2021) Number of Offerors: 1 Source Selection Method: N/A Basis for fair and reasonable pricing:

Commercial Pricing

11. Technical Certification:

I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Signature: Date: 21 December 2021

Typed Name: Title: Supervisory Chemical Engineer

12. Requirements Certification:

I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Signature: Date: 21 December 2021

Typed Name: Title: Lead Procurement Coordinator

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The resulting proposal will be subjected to a technical evaluation, price analysis, and comparison to the Independent Government Estimate (IGE) that will be used to determine that anticipated cost is fair and reasonable. This determination will be made using a price analysis, technical evaluation, and comparison to the IGE. Certified cost and pricing data is not required in accordance with FAR 15.403-1(b)(3).

Signature: ______Date: _12/28/2021________

Typed Name: Title: Contracting Officer

14. Contracting Officer Certification:

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

Signature: _ ________Date: _12/28/2021___

Typed Name: ________Title: Contracting Officer

Approval

Based on the foregoing justification, I hereby approve the procurement of ESPRIT CAM Software Maintenance for on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901 as implemented by FAR 13.501, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Signature: _ ___________Date: ________________________

Typed Name: _____________Title:__________________________

1/3/2022

Contracting Officer