TAB 5 redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CORONA DIVISION

PO BOX 5000

CORONA, CA 92878-5000

IN REPLY REFER TO

J&A No. 50,250

Ser 02/2792

LIMITED-SOURCES JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Corona Division (Corona Division), Contracts Department, Code 02.

2. Description of the Action Being Approved

This Justification and Approval (J&A) authorizes the award of a Firm-Fixed-Price follow-on Contract for the procurement of an Engineering Workbench subscription to IHS Global Inc. (IHS).

Order Number N00024-16-F-B031 was awarded on a sole source basis to IHS, a large business; the existing contract expires on 29 September 2021. This J&A shall be effective from the date of approval to the end of the contract term.

3. Description of Supplies/Services

The Government requires continued on-demand online access to a virtual library and comprehensive database that contains current and historical government and non-government specifications, standards, and directives to NAVSEA Headquarters and SUPSHIPS.

In order to meet needs, the database must include a search engine for industry standards and access to electronic and paper copies of the below mentioned standards. At a minimum, the NAVSEA’s Industrial Engineering Group (SEA 05S) needs on-demand electronic access to the following standards and specifications:

Naval Instructions and Directives, Active and Historical DoD Directives, National Fire Protection Association (NFPA), US DoD Adopted Industry Standards, Specs and Standards Complete, Illuminating Engineering Society (IES) Support Services (SVCS), US DoD Adopted/Association Connecting Electronics Industries (IPC). The Government also needs access to the following complete standards: AIA, ASTM, ASME, AWS, IEEE, SAE International, UL, US DoD Adopted, Historical DoD Standard.

This requirement is necessary for NAVSEA Engineering to define product development and sustainment.

The total estimate value of this acquisition is $3,195,837 and will be funded with Operation and Maintenance Navy (OMN) funds.

The table below depicts the type of funding as well as the estimated amount for each fiscal year.

Appropriation FY Total

OMN FY21 $607,998

OMN FY22 $623,198

OMN FY23 $638,778

OMN FY24 $654,747

OMN FY25 $671,116

$3,195,837

The acquisition will cover a base year, with four (4) one-year options. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), only one responsible source and no other supplies or services will satisfy agency requirement as implemented by Federal Acquisition Regulation (FAR) 8.405- 6(a)(1)(i)(B). This acquisition is conducted under the authority of the MAS Program. The primary statutory authority for the MAS program is 41 U.S.C. 152 (3).

The acquisition is being conducted under the authority of the Multiple Award Schedule Program, FAR 8.401. Approval of this Justification will authorize a limited source procurement of supplies and/or services described in Paragraph 3 under GSA Multiple Award Schedule (MAS) Contract Number GS-02F-024DA.

5. Rationale Justifying Use of Cited Statutory Authority

As discussed below, the statutory authority permitting other than full and open competition applies to this procurement.

IHS is the only source with the capability of providing a comprehensive system that offers integrated technical information to the Navy. The IHS Engineering Workbench Subscription includes the specifications and standards necessary to meet the Government’s minimum need. It includes a virtual library containing the most current version of DoD, Federal, Non-Government Standards (NGS) specifications and standards. The subscription also include access to older version of military specifications and standards that cannot be located in Acquisition Streamlining and Standardization Information Systems (ASSISTS). It also includes a search engine for industry standards and access to electronic and paper copies of listed industry standards.

The purpose of acquiring this subscription is to satisfy the requirement needed to support capabilities of NAVSEA’s Industrial Engineering Group (SEA 05S) by providing access to 70 databases from commercial and government sources including the U.S. Army, Navy, Air Force, MSC, Coast Guard, DoD and their related datasets. This data is required to continue support of aging systems. The IHS Engineering Workbench Subscription is unique because it is the only source that can provide on-demand electronic access to the engineering specifications, standards manual and technical publications in a comprehensive system that satisfies all Navy requirements.

By not acquiring these subscriptions, the Government risks not having up-to-date instructions/publications that are needed for access to industry standards to satisfy Navy requirements and Technical Authority support. Any delays that may result in suspension of service by IHS will effectively eliminate the ability of reviewers such as Program Offices, SEA 08, SEA 05, SEA 04, and others from being able to review/specify Government and NGS which will delay ship design, construction, and maintenance based on past experience.

In addition, future ships will be built using outdated technology and capability that will be detrimental to the success of the Navy’s mission of maintaining, training, and equipping combat-ready Naval forces capable of winning wars, deterring aggression and maintaining freedom of the seas.

Without IHS access, lessons learned incorporated into military specs and standards will not be captured in a readily accessible manner as needed to respond to rapidly changing warfighter needs. Access to IHS will ensure the warfighter benefits from up-to-date systems and equipment captured in updated military specs and standards. Without access, users will not be able to retrieve updated documents resulting in a lack of new technology insertion. This will lead to reduced capability for the warfighter.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

A review of 36 Department of Navy activities known to use similar Engineering Workbench subscriptions revealed only two

(2) that were able to use a source other than IHS. Five (5) were from sources unknown. All the remaining activities obtained subscriptions through IHS. The two (2) non-IHS-using activities obtained subscriptions through the company Terabase Corporation. A thorough research of Terabase’s capabilities confirmed that Terabase is entirely incompatible with the requirements of NAVSEA Headquarters and SUPSHIPS for the following reasons:

IHS is the only company that can provide all the international and national standards from a single source as required to meet Navy requirements. IHS also provides a logistics product tool called “Haystack” that manages government part numbers and related data. Recently a competitive source, Terabase, entered the market with a similar product tool called “LogicQuest.” Although Terabase is a source for this specific product tool, it does not provide all the published standards as required by sponsor of this contract. The Terabase tool allows the user to find parts and related data, but only IHS allows the user to purchase the actual published standard(s) as required.

Other than Terabase, a comprehensive search of the Engineering Workbench subscription market revealed IHS as the only other entity able – or even offering – to provide the services needed.

A Sources Sought Notice (SSN) for this requirement was posted on (beta.SAM) website, indicating the Government’s intent to sole source to IHS. The posting was issued on 20 July 2021 and closed on 23 July 2021. At the close of the SSN, zero (0) responses were received. Market research also revealed that there are no authorized resellers for the IHS Engineering Workbench subscription.

7. Determination of the Best Value.

GSA has determined the prices of fixed-price services of the schedule contracts to be fair and reasonable for the purpose of establishing the schedule contract. Per FAR 8.404(d) DEVIATION, GSA’s determination does not relieve the ordering activity contracting officer from the responsibility of making a determination of fair and reasonable pricing for individual orders. Therefore, ordering activities are responsible to make a separate determination of fair and reasonable pricing for individual orders, BPAs, and orders under BPAs. The Contracting Officer will determine, using the procedures in FAR 15.404-1, that the prices are fair and reasonable and will document such determination with a level of detail commensurate with the complexity and circumstances of each order. By placing an order against a schedule contract, the ordering activity Contracting Officer concludes that the order represents the best value to the Government.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, Corona Division, Contracts Department, Code 02 has no plans at this time to compete future contracts for the types of items covered by this document. If another potential source emerges, Code 02 will assess whether competition for future requirements is feasible.

IAW DFARS 208.405-6 and PGI 208.405-6, since this action is a follow-on order to an order previously issued based on a limiting sources justification citing the authority at FAR 8.405-6(a)(1)(i)(B) or (C), the approving official is required to review the previous justification to determine if the planned actions to remove barriers to competition were completed. The approving official has reviewed the previous justification, which indicated that there were no plans to compete future actions, but that if another potential source emerges that the Command would assess whether competition was possible. The approving official has determined that the efforts discussed in Paragraph 6 above sufficiently completed the actions required by the previous limited source justification. Specifically, as mentioned in Paragraph 6, the requirement was reasonably modified. Market Research will be conducted for any future requirements to determine if there are any potential sources for competition.

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION FAR 8.405-6(c)(2)(x)

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

Bruce Burnside Phone No. Date Project Manager SEA 05S

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Samuel Frazer Phone No. Date Counsel, Code 00L

CONTRACTING OFFICER CERTIFICATION FAR 8.405-6(d)(1)

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

Chris Hainsworth, Phone No. Date Contracting Officer Code 0221

CHIEF OF CONTRACTS OFFICE CERTIFICATION FAR 8.405-6(d)(2)

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

Sean E. Foley, Phone No. Date Chief of Contracts Office, Code 02

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