Sole Source Justification.docx

USE OF OTHER THAN FULL AND OPEN COMPETITION LESS THAN SIMPLIFIED ACQUISITION THRESHOLD MEMO

SUBJECT: Sole Source

I. BACKGROUND

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available.

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

3. This memorandum is derived from Enclosure 3, Department of Navy Simplified Acquisition Procedures Guide (April 2018) and is only applicable to acquisitions under the SAT.

II. DESCRIPTION OF ITEM OR SERVICE (include manufacture/sole source name and address)

The Naval Surface Warfare Center, Carderock Division (NSWCCD) is purchasing Managed Services from Penguin Computing, Inc. (Penguin), to include twelve three-day onsite visits. It is for ongoing technical work on the SEATech High Performance Computing (HPC) Penguin clusters.

MANUFACTURER: Penguin Computing ADDRESS:45800 North Loop West Fremont, CA 94538

III. BASIS FOR DETERMINATION FOR USE OF OTHER THAN FULL & OPEN COMPETITION

☒ B. SOLE SOURCE (select all that apply) Penguin Computing is the only company that manufactures Penguin Computing-branded servers, Scyld ClusterWare clusters, workstations, and peripherals. Although Penguin has authorized resellers, only Penguin- employed technicians may support the hardware and software. If any other vendor were to do technical work on a Penguin system, all warranties and support contracts would be voided. The command currently has a series of master and login nodes, compute nodes, network switches, and InfiniBand switches that are currently under a 3- to 5-year warranty. The warranty allows for replacement parts, limited phone support, and basic remote troubleshooting. The enhanced support requested on this effort will provide a dedicated Penguin engineer available by phone, and Qty. 12 x three-day on-site visits for preventative maintenance, upgrades, and technical support.

NSWCCD

Sole

Source/Brand

Name

Justification

SAT

rev

Effective

September

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☒ 2. Exclusive Licensing Agreements: The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

There are a number of vendors that distribute Penguin Computing products, including BlueTech who was the awardee on purchase order N0016717P0381. However, per Penguin’s warranty terms and conditions, any service by a non-Penguin Computing support representative will void the warranty of the system. The OEM support representatives are also involved in design and manufacturing, having unique knowledge of the equipment infrastructure. The command considered replacing hardware with alternative brands, however, that would require a complete re-evaluation of the “HPC clusters.” An HPC cluster is a collection of different types of nodes connected via a private, fast interconnect. The design details of the HPC clusters and the associated network topologies are developed solely by Penguin Computing. The Contract Specialist contacted authorized equipment resellers to identify Penguin authorized technicians. Based on market research, despite having authorized resellers, Penguin Computing only authorizes internal staff to perform the requested Professional Services.