Redacted LSR Vericut SW N4215824MP40151 832470075.pdf

Vericut Software

CUI

Page 1 of 3 Pages Controlled By: NAVSEA Controlled By: Digital Program Office - Navy Maritime Maintenance Enterprise Solutions (NMMES), MSSD CUI Category: PROCURE Distribution/Dissemination Control: FEDCON POC: Christina Ellis, 207-703-4322, christina.j.ellis5.civ@us.navy.mil

Template updated March 2024

Sole Source Rationale

Upon the basis of the following justification, I, as the Contracting Officer, hereby approve this sole source rationale for the proposed contract action pursuant to the authority cited above as the particular brand name product is essential to the Government's requirements, and market research indicates other companies' products or services do not meet, or cannot be modified to meet, the agency's needs.

1. REQUIRING AGENCY AND CONTRACTING ACTIVITY:

Requiring Agency:

Norfolk Naval Shipyard (NNSY) - N42158 Building 74, Warrington Avenue Portsmouth, Virginia 23709

Contracting Activity:

Defense Information System Agency (DISA)/ Defense Information Technology Contracting Organization (DITCO) - PS8321 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225-5406

2. Procurement Title: Vericut Software Funding Document Number/Tracking: N4215824MP40151 / 832470075 Purchase Order/Contract Number: To be determined Estimated Value: XXXX

3. Regulatory Authority: Federal Acquisition Regulation (FAR) 13.106-1(b)(1). (Open Market Purchase Order) Soliciting from a single source (including brand name). The order may be solicited from one source if the contracting officer determines that only one source is reasonably available.

4. Description of Action: The nature of this requirement is to provide a firm fixed price open market purchase order for new commercial, proprietary, brand name Vericut software for the Norfolk Naval Shipyard (NNSY). This procurement will be awarded to the original equipment manufacturer (OEM) and sole provider CGTech.

This sole source rationale is to justify the new Vericut software required. The total estimated cost for new Vericut software is XXXX. The full acquisition also includes software renewals of existing Vericut software with an estimated cost of XXXX and are covered under the Brand Name Class Justification and Approval for Software Support Modification 1, Log number 2024-0272. The estimated total procurement cost is XXX. Fiscal Year 2024 operation and maintenance, Navy funds are provided

Page 2 of 3 Pages on Military Interdepartmental Purchase Request number N4215824MP40151. The applicable North American Industrial Classification System code is 513210 with a $47 million sales size standard. The requested period of performance for the new licenses is September 9, 2024, through September 8, 2025 to align with the existing Vericut software.

This request is to procure additional Vericut software as the Naval Foundry and Propeller Center (NFPC) which underwent an expansion to support both the previous Virginia Class propulsor manufacturing and the addition of the Columbia Class propulsors. To accomplish the required machining work, additional propulsor manufacturing machines and the hiring of additional machining programmers were required, and therefore, additional Vericut software is required to meet the current expansion needs of the Government. Vericut software is already integrated on the Computer Numerical Control (CNC) machines and no other software will seamlessly integrate into the existing infrastructure without significant training/learning curve delays and additional purchases. Six Vericut licenses are already in use and being renewed, and an additional two new seats and associated maintenance/programming are required. All eight seats for Vericut must be identical and interchangeable for use by the programmers on various machines.

Vericut software is used to verify and simulate numerical code (NC) programs prior to them being run on the shop floor. VeriCut software replicates the logic and actions of each individual machine based off the manufacturers machine controller for a true independent verification of NC. While many other software packages do have some level of simulation, they are using the same logic to generate the NC as they are using to simulate it. This makes catching issues harder, whereas Vericut is using 3-dimentional models and geometric code (G-code) (a combination of alphabet and a numbers) to accurately move the machine and remove the material virtually.

Vericut software reads the G-code and will detect any collisions, incorrect machine commands or motions and produce a virtual cut part that can be inspected and compared to the engineering model. With the two programs being completely separate, true independent verification, which is necessary for ship safety, can be achieved. Independent verification of the propeller manufacturing accuracy is critical in order to maintain naval propulsion system safety and quality standards. Vericut is the only software currently available to satisfy this requirement.

5. Proposed Sole Source Contractor: CGTech, 9000 Research Drive, Irvine, California 92618-4214, USA.

6. Market Research: Market research was conducted from January – May 2024, included reviewing the Department of Defense (DoD) Enterprise Software Initiative (ESI), Department of Navy (DON) Enterprise Software Licensing (ESL) program, National Aeronautics and Space Administration (NASA) Solutions for Enterprise- Wide Procurement (SEWP) V, General Services Administration (GSA) Advantage, the Open Market, and the OEM. This research revealed that CGTech, the OEM

Page 3 of 3 Pages and sole provider for the required new Vericut software is only offered via an open market purchase order only, and CGTech is the proprietary owner, and does not allow for authorized resellers for the Vericut software and/or support. The OEM provided a sole source letter, confirming the required Vericut software and support can only be purchased directly through the OEM CGTech, large business, (CAGE 1WZ87). CGTech provided a budgetary quote in the amount of XXXX. The solicitation will be emailed to CGTech, and the synopsis/solicitation, noting the Government’s sole source intent, will be posted on SAM.gov Contracting Opportunities website, along with the redacted Software Class justification (Modification 1) and redacted sole source justification. All available discounts will be requested for this sole source requirement, using technically acceptable price reasonable evaluation methodology.

Based on current market research, it has been determined only the aforementioned brand name product and/or product support, provided by CGTech, can fully support the Government’s need. This requirement is for proprietary products and/or product support and no competitor functional replacement products exist in the market at this time to meet the Government's need. The Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions, i.e., there are similar products and/or product support in the marketplace that provides the same functionality, the original equipment manufacturer releases ownership rights of the product, or it is economically feasible to procure a new system.

Based on the justification provided by NNSY and Naval Sea Systems Command (NAVSEA) Digital Program Office - Navy Maritime Maintenance Enterprise Solutions (NMMES)/ Management Support Systems Division (MSSD), a determination has been made to issue a sole source solicitation to CGTech for the above-described requirement.

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance, which are included in the sole source rationale, are accurate and complete, to the best of my knowledge and belief.

Christina Ellis, Management Analyst, NAVSEA 03D3 Digital Program Office – NMMES/MSSD, christina.j.ellis5.civ@us.navy.mil, 207-703-4322

Contract Specialist Betty A. Burris, betty.a.burris4.civ@mail.mil, 618-418-6291

CONTRACTING OFFICER APPROVAL: I have reviewed this sole source rationale and find it to be accurate and complete, to the best of my knowledge and belief. This review serves as approval.

Contracting Officer Amber M. Analla DISA/DITCO/PS8321, amber.m.analla.civ@mail.mil, 618-418-6151