CREO_LSJ_Approved_Redacted.pdf

Control No: CAO-18-0586 Program/Equipment: Enterprise Level CREO Parametric

Version – March 2017 For Official Use Only

JUSTIFICATION REVIEW DOCUMENT

FAR 8.405-6 LIMITED SOURCES JUSTIFICATION

UNDER THE GENERAL SERVICES ADMINISTRATION

FEDERAL SUPPLY PROGRAM

Program/Equipment: The United States (U.S.) Army Armaments Research, Development and Engineering Center (ARDEC) requires Enterprise Level CREO Parametric Software Licenses, Maintenance, and Support.

Authority: Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et. Seq) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6.

Amount: $880,057.06

Prepared by: Howard Kane DSN: 880-7476 Contract Specialist Date: 26 July 2018 Email: howard.kane.civ@mail.mil

Contracting Officer: Elizabeth A. Horak DSN: 880-5369 Contracting Officer Date: 27 July 2018 Email: elizabeth.a.horak2.civ@mail.mil

Technical: John Kreider DSN: 793-8163 Program Manager Date: 26 July 2018 Email: john.d.kreider.civ@mail.mil

Requirements: John Kreider DSN: 793-8163 Program Manager Date: 26 July 2018 Email: john.d.kreider.civ@mail.mil

Reviews: I have reviewed this justification and find it adequate to support limiting competition.

Program Manager:

Typed Name: John Kreider

DSN: 793-8163

Signature: //signed// Date: 26 July 2018

Legal Counsel:

Typed Name: Brendan Sullivan

DSN: 880- 8408

Date: 27 July 2018

Center Director Typed Name: David A. Etro

DSN: 880-3975

Signature: //signed// Date: 27 July 2018

Associate Director Typed Name: John M. Eilenberger Jr.

DSN: 880-4423

Date: 30 July 2018

FAR 8.405-6 Limited Sources Justification Under the General Services Administration

Federal Supply Schedule Program

1. Contracting Activity: U.S. Army Contracting Command – New Jersey

2. Description of Action: The U.S. Army Armament Research, Development and Engineering Center (ARDEC) requests a Firm Fixed Price Call Order be placed against one of the following three Blanket Purchase Agreements (BPAs) of the Department of Defense (DoD) Enterprise Software Initiative (ESI): W52P1J-12-A-0016, W52P1J-12-A- 0017, and W52P1J-12-A-0018. These BPAs were awarded against General Services Administration (GSA) Schedule contract GS-35F-0265X through the Army’s required source of commercial information technology (IT) hardware and software website, Computer Hardware, Enterprise Software and Solutions (CHESS). The estimated award date for this action is 31 August 2018 and fiscal year 2018-19 Research, Development, Test and Evaluation funds will be used. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d) (i) (B).

3. Description of Supplies/Services: ARDEC has been creating 3D Technical Data Packages (TDPs) since the year 2000. From the beginning, the Pro/Engineer software, developed by a company named PTC, was the software utilized for generating these TDPs and the original Research and Development (R&D) models. Over the past 18 years, ARDEC has created approximately 14 million 3D models and drawings using PTC’s Pro/Engineer software. The software has since been updated and renamed CREO Parametric by PTC. ARDEC is currently using the base CREO Parametric licenses plus subscriptions for multiple software modules that work in conjunction with the base license. The combination of the base license and the module plug-ins constitute the enterprise level. The subscriptions required changes from year to year depending on the needs of ARDEC and the newly released modules from PTC.

These software license and subscription based modules constitute the core of ARDEC computer-aided design (CAD), modeling, analysis and TDP generation capability. CREO Parametric provides a currently operational DoD Information Assurance Certification and Accreditation Process (DIACAP) accredited Information Technology Service, utilizing the Software as a Service (SaaS) Model. SaaS is a DoD ESI strategy for recurring Total Ownership Costs (TOC).

The current requirement is for both new software licenses and renewals, and associated support which includes patches, updates and maintenance, as follows:

License Name Part Number Quantity

CREO Parametric Complete Machining Extension

SKU-00001954 1

CREO Parametric Advanced Rendering Extension

SKU-00000794 1

CREO Parametric Advanced Simulation Extension

SKU-00003004 18

CREO Parametric Direct SKU-00001591 5

CREO Parametric Engineer II with Advanced Assembly

SKU-00001594 1

CREO Parametric Engineer III SKU-00002374 204

CREO Parametric Manikin SKU-00001478 2

CREO Parametric Manikin Analysis SKU-00001480 2

CREO Parametric Advanced Simulation Extension

SKU-00003004 3

CREO Parametric NC Sheetmetal Extension SKU-00001948 1

CREO Parametric Progressive Die Extension

(PDX)

SKU-00001513 1

CREO Parametric Reverse Engineering Extension (REX)

SKU-00001514 1

CREO Parametric Tool Design Extension (TDO) SKU-00001946 3

CREO Parametric eLearning Library SPN-L695-F 50

DIVISION Immersive Device Option (IDO SKU-00001529 1

DIVISION Mockup – Windows SKU-00001524 1

DIVISION Reality, SKU-00001536 SKU-00001536 1

DIVISION Motion Planning Option (MPO) SKU-00001534 1

CREO Parametric Complete Machining Extension

SKU-00001954 3

CREO Parametric Production Machining Extension

SKU-00001953 4

CREO Parametric Mold Analysis Extension SPN-3367-L 1

CREO Parametric Collaboration Extension for

CATIA V5

SKU-00001464 2

CREO Parametric Collaboration Extension for

NX

SKU-00001466 3

CREO Parametric Cabling Design Extension SKU-00001955 1

CREO Parametric Application Programming Toolkit

SKU-00001950 1

Mathcad Professional - Floating SKU-00002411 10

CREO Parametric Schematics SKU-00002498 10

CREO Parametric Design Exploration Extension SPN-3361-F 7

CREO Parametric Intelligent Fastener Extension

SKU-00000816 100

CREO Parametric Layout SKU-00000909 10

CREO Parametric Options Modeler Standard Application

SPN-3588-F 10

CREO Parametric Advanced Framework Extension

SPN-3228-F 9

ECAD/MCAD Collaboration Extension SKU-00001968 5

CREO Parametric Tolerance Analysis Extension SKU-00001967 10

CREO Parametric Collaboration Extension for Solidworks

SKU-00006363 5

CREO Parametric Additive Manufacturing SPN-3377-F 10

Period of Performance: 18 Sep 18 to 17 Sep 19 Total Value: $880,057.06

4. Authority Cited: Title III of the Federal Property and Administrative Services Act of 1949 (41U.S.C. 251, et. Seq) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6 and substantiated by the following:

FAR 8.405-6(a) (1) (i) (A). An urgent and compelling need exists, and following the procedures would result in unacceptable delays.

FAR 8.405-6(a) (1) (i) (B). Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

FAR 8.405-6(a) (1) (i) (C). In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with applicable Federal Supply Schedule ordering procedures. The original order or BPA was not previously issued under a sole-source or limited-sources procedures.

FAR 8.405-6(b) (1). Items peculiar to one manufacturer. An item peculiar to one manufacturer can be a particular brand name, product, or a feature of a product, peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer.

5. Reason for Authority Cited: CREO Parametric software is the 3D modeling software that has been used by ARDEC since 2000 for generating 3D models and drawings that are a part of TDPs for Programs of Record (PORs). CREO Parametric software is required to utilize a repository of over 14 million 3D models and drawings. While there is software available that can provide the same capability, none of these other software brands are compatible with each other. Once a file is created using one vendor’s software, that same software is required to continue to work within the file format created. Switching to a new software would require all of the current 3D models and drawings to be recreated using a file format that was compatible with the new software.

The impact of this would be felt across multiple PORs and it would take approximately 18 years to recreate them for use with a new software. Recreating ARDEC’s entire repository from scratch is not a realistic alternative. Not only would the individual 3D models need to be recreated, but all the versions of that model would also need to be reconstructed. For instance, recreating a 3D model of part number “123456, Revision G” would also require the recreation of models for revisions A, B, C, D, E and F, as well.

While it is not possible to quantify the time it would take to complete this task across the entire inventory of 3D models and drawings, the effort is entirely too time-consuming and not considered to be in the best interest of the Government.

Market research determined that there are several other products that could fulfill this requirement, such as Autodesk AutoCAD, BricsCAD, and Autodesk Inventor which are commercial off the shelf software solutions. Utilizing one of these other computer aided design softwares is not a viable alternative to the Government as the file format for each vendor’s software is not compatible with other brands of software. This means that if, for example, a file is created with BricsCAD software, CREO Parametric software cannot open the file. Switching to a new software to meet this need would require 14 million 3D models and drawings that are a part of TDPs for multiple PORs to be recreated. Also, modifying any of the other software brands to allow for a different file type to be opened for CAD software is not possible; vendors do not want to change their software to allow for this as it reduces their market share. Further, CREO Parametric software would still be required to open the files currently in the Army’s database to allow for them to be recreated using new software. Any changes would also impact the POR associated with the TDP being reformatted. The overall impact would be seen as mission failure for the supported PORs. Any error in recreating the TDPs could ultimately result in injury to the service member because they are all associated with small, medium and large caliber weapons, as well as vehicles, missiles and tank systems. Switching to a new software would not allow for the existing files to be opened, therefore, all of the work performed in the last 18 years would be lost. This would result in delays to all of the supported PORs, the extent of damage to which cannot be accurately quantified. Currently the Government will have access to CREO Parametric until 30 September 2018.

6. Actions to Increase Competition: The CREO Parametric Software is proprietary technology owned by PTC. PTC has several authorized resellers, three (3) of which are on CHESS. CHESS, on behalf of the DOD ESI, has awarded multiple BPAs against GSA Schedules for PTC Products, including the CREO Parametric licenses and software maintenance that ARDEC requires. As a result of the proprietary nature of this software, there is no foreseeable way of increasing competition, except amongst those brand name resellers. When the current CHESS BPAs expire, they will be resolicited and if there is another vendor that can provide this software, they will have the opportunity to propose and be awarded a BPA at that time.

7. Market Research: Market Research for this requirement was completed in March 2018 by ARDEC, specifically the Enterprise and System Configuration Center, System Engineering Directorate, Configuration Management Division, Small Caliber Systems Branch. The first technique was to review required sources of supply, which for software, is CHESS. In this instance, CHESS was identified as a viable source to renew the existing software licenses. In addition, another technique was used to review other brands of similar software by contacting knowledgeable people in both Government and Industry. A 3Di TDP Workshop was held 30-31 January 2018 to discuss TDPs and the associated software, and represented in the workshop were DoD agencies, other Government agencies, and Industry. For example, the Air Force, Defense Logistics Agency, Navy, Boeing, Pratt and Whitney, L3 Technologies – Power Distribution, and

Edgewood Chemical and Biological Center all had representation in the workshop. A full list of the participating organizations is as follows:

Organization

Anautics, Inc

NIST

US Air Force

Defense Logistics Agency (DLA)

RMS-Sikorsky

Boeing Company

Edgewood Chemical Biological Center

US ARMY TARDEC

NAVAIR

Raytheon

Aras

NAWCAD

SAP

HII Newport News Shipbuilding

Cargo Helicopters PMO (HII)

Boeing Company

Pratt & Whitney

Aviation and Missile Research, Development, and Engineering Center

SAP

Elysium Inc.

Institute for Process Excellence

Pratt & Whitney

MARCORSYSCOM

ARDEC

Purdue University

US Army NSRDEC

Siemens Government Technologies

TARDEC

TARDEC

NAWCAD

Amelex

NRO

Defense Logistics Agency (DLA)

Boeing Company

Materials Sciences Corporation

NIST

NASA - Marshall Space Flight Center

Action Engineering, LLC

United States Government Civilian

Edgewood Chemical Biological Center

Boeing Company

GE Digital

NAWCWD China Lake

National Institute of Allergy and Infectious Diseases

NAVAIR

University Alabama Huntsville

NAVSEA NSWC Carderock

Naval Surface Warfare Center Carderock

ARDEC

US Army NSRDEC

SAP

Naval Air Warfare Center Aircraft Division

Aras

Pratt & Whitney

US ARMY AMC

KShell Analysis

National Institute of Allergy and Infectious Diseases

Edgewood Chemical Biological Center

Defense Logistics Agency (DLA)

Marine Corps Systems Command

3D PDF Consortium

Edgewood Chemical And Biological Center

Anark Corporation

L3 Technologies - Power Distribution

NGA

Lockheed Martin

NAVAIR

Razorleaf Government Solutions

USAF Support Contractor - U of Dayton Research Institute

LMI

US Coast Guard

Northrop Grumman Corporation

NATEC

DLA Land & Maritime

Aras Corporation

U.S. Air Force

Synergy Software Design

NAVAIR

Razorleaf Government Solutions

ARDEC

DLA Aviation

3D PDF Consortium

Boeing Company

NAWCWD China Lake

ATI

ITI

NORTHROP GRUMMAN MISSION SYSTEMS

ATI

Massachusetts Department of Transportation

Naval Facilities Engineering Command Headquarters

The Boeing Company

NATEC

Missile Defense Agency

NORTHROP GRUMMAN MISSION SYSTEMS

US ARMY ARDEC

The results of these interactions determined that while there are multiple software solutions that can provide the same capability to the Government, they are not compatible with the TDPs the Army currently has created to support PORs. If a TDP, 3D model or drawing was created with CREO Parametric software, the only software that can be used to access them is the CREO Parametric software. Some of the alternatives to CREO Parametric software are Autodesk AutoCAD, BricsCAD, and Autodesk Inventor. If a model, drawing, or other piece of a TDP was created using CREO Parametric, these other brands of software would not be able to utilize them. Currently there are in excess of 14 million 3D models and drawings using CREO Parametric, which would be unusable if the software was switched to a new brand. Based on this, it was determined to continue to use CREO Parametric and solicit for this brand of software using the following three DoD ESI BPA holders available via CHESS:

Four Points Technology, LLC W52P1J-12-A-0018 Immix Group W52P1J-12-A-0018 Optimal Solutions W52P1J-12-A-0017

8. Other Facts:

a. Procurement History Contract: W52P1J-12-A-0016-2T02 Contractor: Immix Technology, Inc.

Award Date: 18 September 2017 Competitive Status: Fair Opportunity

b. There are no other facts that need to be addressed to support this action.

9. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: John Kreider Date: 26 July 2018 Title: Program Manager Signature: //signed//

10. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: John Kreider Date: 26 July 2018 Title: Program Manager Signature: //signed//

11. Best Value Determination/Fair and Reasonable Cost Determination: I hereby determine that the BPA call order represents the best value to the Government in accordance with FAR 8.405-6(c) (2) (v). Additionally, I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following: price analysis IGCE

Other: identify the methodology or combination of methodologies that will be used.

Typed Name: Elizabeth A. Horak Date: 27 July 2018 Title: Contracting Officer Signature: //signed//

12. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Elizabeth A. Horak Date: 27 July 2018 Title: Contracting Officer Signature: //signed//

Approval

Based on the foregoing justification, I hereby approve the procurement of Enterprise Level CREO Parametric Software Licenses, Maintenance, and Support under Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et Seq.)

and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405- 6(b)(1) Items peculiar to one manufacturer, subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

BETH-ANN MENDELL Date: 8 August 2018 Advocate for Competition Army Contracting Command – New Jersey