Thermo-Calc Software Sole Source Justification_Redacted.pdf

NSWCCD Sole Source/Brand Name Justification SAT rev 1 Effective September 2020

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

THRESHOLD MEMO

FROM:

CODE: 611

SUBJECT: Sole Source/Brand Name Justification / Limited Source Justification for Use of Other than Full &

Open Competition for an Acquisition under the Simplified Acquisition Threshold (SAT)

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)

5-year renewal (base year plus 4 one-year options) of the annual license, maintenance and support (M&S) for a floating network license of the Thermo-Calc software suite as well as one-time version upgrades for three associated material databases for NSWCCD Code 611. Code 611 has used Thermo-Calc tools for 7 years to simulate thermodynamic, kinetic, and precipitation-based processes related to microstructural evolution in casting, forging, welding, additive manufacturing, and other production processes. This FY22 purchase shall continue the license M&S for the software for an additional 5 years and upgrade the three associated databases to their newest version. The estimated base year cost of the purchase is , and the estimated total contract value is , including all options. The annual delivery date requirement for each of the option years of the contract is 30 April.

MANUFACTURER:

Thermo-Calc Software, Inc.

4160 Washington Road, Suite 230 McMurray PA 15317

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

A. BRAND NAME:

Item required must be a brand name product, or feature of a product, particular to one manufacturer.

1. Restrictive Rights: The source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service required.

2. Exclusive Licensing Agreements: The item or service is only available from the Original Equipment

Manufacturer (OEM).

3. Other Reasons:

B. SOLE SOURCE (select all that apply)

1. Restrictive Rights:

The source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service required.

Thermo-Calc is the developer and has established proprietary rights for the entire Thermo-Calc software suite and related material databases, thus making the software available from only one source.

Code 611 originally purchased Thermo-Calc over 7 years ago and continues to use the software to simulate thermodynamic, kinetic, and precipitation-based processes related to microstructural evolution in casting, forging, welding, additive manufacturing, and other production processes. Upgrading to the newest versions of the material databases is required to support numerous on-going research efforts supporting PMS 397, PMS 450, and PMS 378/9 research programs, in addition to the major ONR program directly supporting the purchase. Continued current and out-year usage of the Thermo-Calc software suite is required to maintain continuity to support on-going projects. To try to transition to another application is not a practical solution because the upfront cost of a new software would be extremely detrimental and there is no way to convert historical Thermo-Calc software suite simulations into other software packages without completely starting over. Due to the Thermo-Calc software package’s unique capabilities, as well as the proprietary and specialized nature of its software code, no other source than Thermo-Calc can provide or support Code 611’s Thermo-Calc software suite requirements.

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.

Thermo-Calc is the developer and only authorized distributor and seller of Thermo-Calc product licenses, software maintenance, and technical support.

3. Other Reasons:

NSWCCD Code 611 performs research, development, testing, and evaluation in the areas of welding, welding-related allied processes, nondestructive testing and evaluation and integrated computational materials engineering in support of the Office of Naval Research, various surface and subsurface acquisition and in-service program offices, and the NAVSEA Technical Warrant Holders for Welding and Fabrication of Submarine Structures, Welding and Fabrication of Surface Ship Structures, Machinery Welding and Fabrication, and Nondestructive Testing and Evaluation. Code 611 also provides engineering and technical support for emergent Fleet needs to include microstructural evolution and modification. The use of simulation software reduces the schedule and cost impacts for the support Code 611 provides to our above-mentioned stakeholders. Code 611 requires the Thermo- Calc software suite to simulate thermodynamic, kinetic, and precipitation-based processes related to microstructural evolution in casting, forging, welding, additive manufacturing, and other production processes.

Code 611’s largest simulation effort is the “Agile Manufacturing Integrated Computational Materials Engineering (ICME) Toolkit” (Agile ICME) program funded by the Office of Naval Research (ONR). Code 611 requires purchasing the multi-year renewals of the Thermo-Calc software suite to continue the support of this multi-year ONR-funded effort, creating an agile ICME toolkit to transform the way the Navy approaches materials-related engineering efforts for schedule and affordability enhancements.

Code 611 requires the follow-on purchase of a multi-year renewal of the Thermo-Calc software package as only Thermo-Calc has the capabilities to enable the continued compatible usage of already-developed models needed for analysis of the ONR-funded Agile ICME program tasks. The impact of not soliciting a current year and out-years renewal of the Thermo-Calc software suite is that Code 611 will not be able to maintain continuity to support the on-going Agile ICME program or connect with other Navy facilities. To transition to another application is not a practical solution because the upfront cost of a new software and the schedule delays associated with rebuilding existing models would be detrimental to the Navy since there is no way to convert historical models into other software packages without a complete rebuild. The cost of model recreation is over a million dollars across all projects. An award to a company other than Thermo-Calc would result in (a) substantial duplication of costs to the U.S. Navy, which would not be recovered through competition, and (b) unacceptable delays in the completion of welding simulations in support of ONR programs.

Code 611 initially purchased their Thermo-Calc module licenses in FY15 as part of NSWCCD contract N6554015P5134. DICTRA was added in September 2015 as part of NSWCCD contract N0016715P0227. The TC-PRISMA module was added in FY19 as part of NSWCCD contract N0016719P0076 and the TC-Python module was added in FY20 as part of NSWCCD contract N0016720P0126.

IV. CERTIFICATIONS & APPROVALS

A. Technical/Requirements Certification: I certify that the facts and representation under my cognizance, which are included in this justification, are complete and accurate to the best of my knowledge and belief.