JDA-MRO-Web-Services-REDACTED.docx

ACC-NJ-ES 05 June 2015

MEMORANDUM FOR RECORD

SUBJECT: Solicitation W15QKN-15-Q-0044, Sole Source Justification, JDA Software Maintenance Repair and Overhaul (MRO) Web Services Support

1. CONTRACTING ACTIVITY: U.S. Army Contracting Command - New Jersey

2. DESCRIPTION OF ACTION: This proposed action is to award a new Firm Fixed Price contract for JDA Software Maintenance Repair and Overhaul (MRO) Web Service Support. Fiscal Year 2015 Operation and Maintenance – Navy appropriations will be utilized.

3. DESCRIPTION OF SUPPLIES/SERVICES: The Naval Air Systems Command (NAVAIR) Depot Maintenance System (NDMS) is a depot production system that supports the resources required to perform depot level maintenance, repair, modification of aircraft, engines, components and other aeronautical equipment and to perform manufacturing and prototyping operations. NDMS provides this support for the Navy Fleet Readiness Centers (FRCs) at Cherry Point, NC (FRC East), North Island, CA (FRC Southwest), Jacksonville, FL (FRC Southeast), and also at the Defense Information Systems Agency (DISA).

The NDMS Maintenance Repair and Overhaul (MRO) application, which is a Commercial Off-The-Shelf (COTS) software application provided by JDA Software (JDA), requires transaction management capability provided by JDA in order for NDMS to implement transaction rollback capabilities. Prior to the new MRO release, JDA provided this capability via Application Program Interfaces (APIs). In the new MRO 8.3 release, these APIs need to be redeveloped as Web Services. As the OEM, it is necessary for JDA to develop these Web Services for various scenarios as identified by NDMS.

There are eleven (11) known transactions for which APIs need to be redeveloped as Web Services and provided on a Firm Fixed Price (FFP) basis. In addition it is possible that up to four (4) additional APIs may be identified and required during development. The JDA Software point of contact, Ms. Nancie J. Torrence stated they may able to quote a firm fixed price to these four additional APIs (Optional Items) after the eleven known transactions were in process. The contractor would then have a better understanding of the labor category skill mix and the quantity of labor hours that would be required for these four additional APIs.

Transaction management capability is required to allow NDMS developers integrating with MRO the ability to chain API calls together and have MRO process them as a single transaction. Without transaction management, the possibility of incomplete business transactions processed in MRO increases, which would cause widespread data integrity issues, causing major rework and extra cost to the NDMS program. Therefore, it is essential for NDMS to acquire these new web services.

SUBJECT: Solicitation W15QKN-15-Q-0044, Sole Source Justification, JDA Software Maintenance Repair and Overhaul (MRO) Web Services Support

This requirement is for a four-month period from date of award; and the estimated value of the proposed action is $143,526.

4. AUTHORITY CITED: 10 U.S.C. 2304(c)(1); as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2) Only One Responsible Source and No Other Supplies or Services Will Satisfy the Agency Requirements.

5. RATIONALE FOR AUTHORITY CITED: The proposed source for this effort is The JDA Software, Inc., located at 14400 N. 87th Street Scottsdale, AZ 85260, Phone (610) 909-1169.

The NAVAIR NDMS is a depot production system that supports the resources required to perform depot level maintenance, repair, modification of aircraft, engines, components and other aeronautical equipment and to perform manufacturing and prototyping operations. NDMS provides this support for the Navy Fleet Readiness Centers (FRCs) at Cherry Point, NC (FRC East), North Island, CA (FRC Southwest), Jacksonville, FL (FRC Southeast), and also at the Defense Information Systems Agency (DISA).

The NDMS MRO application, which is a COTS software application provided by JDA, requires transaction management capability provided by JDA in order for NDMS to implement transaction rollback capabilities. Prior to the new MRO release, JDA provided this capability via Application Program Interfaces (APIs). In the new MRO 8.3 release, these APIs need to be redeveloped as Web Services. As the Original Equipment Manufacturer (OEM), it is necessary for JDA to develop these Web Services for various scenarios as identified by NDMS.

Failure to provide these services would have enormous impact on the mission of the NDMS Program and the viability of the naval aircraft repair and maintenance capabilities at the FRCs in Jacksonville, FL, Cherry Point, NC and North Island, CA. If JDA Software, who is the OEM for this software, could not provide web services, then NDMS itself would have to greatly delay its long-planned MRO 8.3 implementation effort for many months so that it could develop compensating corrective transactions. This would be quite complex and costly, with the high probability of introducing extensive data integrity risk.

A letter was provided from JDA Software on 12 March 2015 stating that only JDA, as the OEM of the MRO Software, is able to provide these development services. JDA Software does not have resellers of this software and has 100% ownership of the Intellectual Property (IP) which includes the underlining source code of this software. No other company has access to JDA’s source code.

6. EFFORTS TO OBTAIN COMPETITION: Based on the market research and information in paragraph 5 above, effective competition is not anticipated for this action.

SUBJECT: Solicitation W15QKN-15-Q-0044, Sole Source Justification, JDA Software Maintenance Repair and Overhaul (MRO) Web Services Support

7. ACTIONS TO INCREASE COMPETITION: NAVAIR does not intend to pursue actions to increase competition as a result of the market research analysis and consideration of this procurement action. However, market research for the Concerto Support Services follow-on acquisition isare on-going and continuous. The Government continues to survey the market for other Enterprise Resource Planning providers who could meet the need are available and/or if JDA develops acceptable reseller relationships.

8. MARKET RESEARCH: JDA MRO provides repair and overhaul facilities at any level of the supply chain, providing the information, planning and scheduling tools, and management controls business need to maximize on-time delivery performance. Designed to support the entire process — from asset receipt to delivery back into service — this solution can be deployed to help business maintain and repair aircraft, engines, vehicles, ships and related sub-systems and components.

JDA MRO enables business to effectively manage labor, material requirements, and equipment and capacity resources while controlling product configurations and costs. This complete solution features asset tracking; induction and dispositioning; repair, replace and rebuild management; resource planning; and integrated Web-based cost, operational and financial management.

In previous versions of MRO, JDA provided transaction management capability for their APIs via a commit control setting made available to application developers. This allowed software developers needing to interface with MRO the ability to “chain” together multiple API calls and manage them as a single transaction. If all calls in the chain processed successfully then the entire transaction was deemed successful. If one of the calls in the chain failed to process then the entire transaction could be deemed as a failure and any data changes made could be “rolled back” or undone.

With the new MRO version 8.3, JDA has replaced the APIs with web services. No transaction management capability has been provided for these web services. Without this capability, NDMS software developers integrating with the MRO application are unable to chain program calls together and have MRO process them as a single transaction. Lack of transaction management increases the possibility that incomplete business transactions are processed in MRO. Interfacing applications will be required to provide compensating "undo" transactions which may be quite complex and introduce data integrity risk.

SUBJECT: Solicitation W15QKN-15-Q-0044, Sole Source Justification, JDA Software Maintenance Repair and Overhaul (MRO) Web Services Support

9. INTERESTED SOURCES: To date, no other sources have written to express an interest in providing services. Notices required by FAR 5.201 shall be published and all proposals received in response to this action shall be considered.

10. OTHER FACTS:

Procurement history:

Contract Number W15QKN-12-C-0061 Contractor: JDA Software Inc.

Period of Performance (included Options): 15 September 2012 through 14 September 2015 Contract Value (included Options): $4,020,456.00 Procurement Method: Sole Source

11. FAIR AND REASONABLE COST DETERMINATION:

I hereby determine that the anticipated costs to the Government for this contract action will be fair and reasonable based on price analysis, comparison of proposed costs with an Independent Government Cost Estimate, and pricing available in the commercial marketplace.

12. CONTRACTING OFFICER CERTIFICATION:

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

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