REDACTEDWindchill.pdf

Department of the Army

Control No: 12-083 Program/Item: PTClWindchill

Est. Dollar Value: _

Limited Source Justification for Establishment of a Brand Name Blanket Purchase Agreement under

General Services Administration (GSA) Multiple Award Schedule

I. Contracting Activity: U.S. Army Contracting Command - Rock Island (ACC-RI), Rock Island, IL 61299-6500.

2. Description of Contract Action: Approval is sought for establishing a Blanket Purchase Agreement (BPA) under the authority of the Multiple Award Schedule Program on a brand name, limited sources basis, accomplished by soliciting offerors holding GSA Schedule 70 contracts. Specifically, the proposed action would result in the establishment of a BPA against an Information Technology (IT) Schedule 70 contract for Windchill brand named licenses and related maintenance support. Parametric Technology Corporation (PTC) is the Original Equipment Manufacturer (OEM) of Windchill software licensing and maintenance and holds the operational source code in confidence. PTe makes their products available through resellers.

While market research indicates there are many authorized rcsellers of Windchill, there is currently one authorized reseHer. Immix Technologies, with a GSA schedule.

likely that this action will result in a single award. The anticipated award date' Once the BPA is established, an Enterprise License Agreement (ELA) order competed among the approved BPA holders, should there be more than one, for the acquisition and consolidation of new and existing Windchill software licenses and maintenance support for the end user licensing agreements (EULAs) for the Army Material Command (AMC) and the Navy's Program Executive Office-Integrated Warfare Systems (PEO-IWS). The ELA order will be structured to include a set amount of software licenses each year as well as discount rates for additional software licenses and maintenance.

The BPA will be a decentralized, Finn-Fixed-Price (FFP) procurement vehicle with a single or multiple awardees, having a total period of perfonnance of five years consisting of a one-year base period and four, one-year options. The BPA will contain the ability for use by all Department of Defense (DoD) and Federal agencies through the Enterprise Software Initiative (ESI). It will also contain a provision for use as a SmartBuy program. Funds to be utilized will vary depending on the specific requirement for orders against the BP A. The type of funding will include Research, Developmcnt, Test and Evaluation (RDTE), Army Working Capital Fund (A WCF), Operation & Maintenance (OMA) and Other Procurement Army (OPA) funds.

3. Description of Supplies/Services: AMC and the Navy PEO IWS have a current and future need for upgrades, new licenses and maintenance for the Windchill user seats that are in operation with their respective enterprise communities. Windchill is product lifecycle management software designed to support the execution of programs throughout the entire life cycle by hosting applications that provide capabilities required to manage and execute projects.

These capabilities includes web based secure access to program infonnation, document management, Computer Aided Design(CAD) data management & visualization of CAD data, Program/Item:

Est. Dollar Value:

automated process (workflow) execution, project status reporting/dash boarding, project team composition and role definitions, role based access controls, project planning and management, remote meeting facilitation. action item tracking and reporting, real-time collaboration of program activities, access to ship messages and a program resource calendar. All capabilities are web-accessible in an integrated environment. Windchill is used by AMC and the Navy PEO IWS to host an integrated digital environment and other programs involved in modernization and maintenance. Windchill provides a currently operational DoD Information Assurance Certification and Accreditation Process (DIACAP) accredited Information Technology Service, utilizing Software as a Servicc (SaaS) Model. SaaS is a DoD Enterprise Software Initiative (EST) strategy for reducing Total Ownership Costs (TOC). This is in line with the Joint Service initiative to reduce TOC by including the Navy in a single DIACAP Certification.

Current AMC and Navy users buy Windchill through GSA independently, from ImmixTechnology, with no coordination across the enterprise. As a result, the current Government Windchill perpetual licenses are restrictive and do not allow for transferability, net centricity (sharing of information) and flat lined (non-escalated) maintenance. 'lbe initial ELA order will dc-restrict existing Windchill perpetual and additional software licenses being utilized by AMC and Navy PEO-IWS and as a result, all of the current licenses of these two organizations (shown in Attachment B) will have all of the rights listed in the Bill of Materials (BOM) in Attachment A. This may potentially reduce the number of licenses these commands need to purchase in the future by providing flexibility in transferring existing and future perpetual li censes to those organizations that have a requirement.

The estimated amount of the order licenses and related maintenance options for both organizations for software

4. Authority Cited: Section 803 of the National Defense Authorization Act for Fiscal Year 2002 (pub. L. 107-107), FAR 8.405-6(a)(I)(i)(B) and FAR 8.405-6(b)(J). The supplies or services to be ordered are unique or highly specialized by brand name. However, at least one source under the IT Schedule 70 contract is capable of providing the Windchill software licenses and maintenance at the level of quality required. BPA awardees will be limited to those vendors who can provide Windchill products and services.

5. Rationale for Limiting Sources: The Windchill system is the only software that can meet the Government's requirements. No other product can meet or be modified to meet the Government's needs. These accreditations are essential components which enhance the Government's credibility. Acquiring these accreditations are time consuming and costly.

It is critical that the proposed procurements be structured in a manner that suppons the Anny' s plan to establish a single instance of Windchill hosted at an Army approved data center compliant with the Army Data Center Consolidation directive which provides for a reduction in physicallT infrastructure and elimination of approximately three-quarters of the Army's data centers by the end of2015. In order to accomplish this, licenses will need to be procured centrally, and not by the individual system integrators through multiple contracts supporting each

ProgramJItem: PTC/Windchill

Est. Dollar Value:_ program as they are currently. Such an approach has led to non-standard license terms and conditions as well as the inability to transfer the licenses procured across the services.

The total number of users, and the BOM (Attachment A), represent the total estimated fielding requirements covering FY 12-FY17, as well as the number of users that will have accounts on mUltiple systems. In order to meet the minimum fielding schedules, th~am will have to cover AMC's current inventory of_ and the Navy's inventory o~ser Licenses and the associated applications. Over the next five years, AMC and the Navy PEO-IWS will continue to have the need not only for the support on the existing licenses, but also for additional licenses. These organizations have trained on, utilized and embedded these products in their architecture over the past 10 years. There is a risk of harm to the mission and the war fighter due to likely downtime and system malfunctions as the systems are migrated from one software product to another.

Only Windchill brand name software and maintenance plans fully interoperate with the Windchill platform. Other companies have similar products but lack the ability to provide CAD and therefore do not meet, or cannot be modified to meet the Government's requirements of this procurement effort. AMC has deployed multiple instances of Windchill across the Command primarily to support product data management and configuration management on weapon systems. This is an AMC core competency provided by multiple RDECs within RDECOM in support of their respective commodity focused PEOs and Program Managers. The unique qualities of processes executed within Windchill support over 3,000 separate weapon system platforms comprised of tactical and combat vehicles, ammunition, ground support equipment and critical Joint mission programs such as the Mine Resistant Ambush Protected vehicle (MRAP).

Windchill also supports the certification and accreditation of Technical Data Packages (TDP) used by both Army and Defense Logistics Agency (DLA) for the procurement of spare parts in direct support of Soldier requisitions from the field. Windchill has helped AMC drastically reduce the lead time for the acquisition of spares through the automation and integrated data management capabilities offered by the product. Windchill has also been successfully used in collaborating design and prototype add-on armor kits and other innovative solutions developed by RDECOM in direct support of multiple loint Urgent Operations Needs Statements (JUONS).

Windchill is also currently used to manufacture parts in the field at Bagram, AFB and other Southwest Asia (SWA) locations through the Mobile Parts Hospital program.

Replacing Windchill with another product that does not include CAD features would have an adverse effect on multiple critical joint mission programs, impacting certification and accreditation ofteclmical data packages as in those mentioned above. The Government would lose all lead time that was gained from lean six sigma process improvements and lose moh;l, parts for the hospital programs abroad. The Army has already invested procurin~Windchilllicenses in the past and has invested another"

I in the implementation and deployment of the software across multiple OriiiiiiJU,tio,ns .. This has led to the Anny deploying a superior capability for engineering product data management using Windchill that is now being leveraged by the Navy to reduce their investment costs. Switching to another product will require duplication of costs to establish a lesser capability than what the Anny currently possesses.

Program/Item:

Est. Dollar Val.ue:

6. Market Research: Market research was conducted from 23 July 2011 to the present by AMC, Naval Systems Sea Command (NA VSEA) and Project Director (PO) Computer Hardware Enterprise Software and Solutions (CHESS). This research included reviewing the NASA Solutions for Enterprise-Wide Procurement (SEWP) Government-Wide Acquisition Contracts (GWAC), the CHESS contracts, the Enterprise Software Initiative (ESI) Blanket Purchase Agreements (BPAs), the GSA Schedules, and ongoing collaborations. PO CHESS, in its role as the Army's designated Software Product Manager (SPM), is continually engaged in researching the software and software support service markets in order to identify beneT pricing, terms, and conditions fo r use in the development of enterprise level asset management contracts and BPAs supporting thc Army. Representatives ofPD CHESS continually perform market research through meetings with industry and other Government agencies, market surveys. and attendance at various conferences, including the various DoD IT Conferences, meetings of the DoD EST Working Group. and the System and Software Technology Conference. The purpose of this market research was to identify potential resellers of Windchill products and determine whether those businesses are or can become GSA contract holders under Schedule 70. The results identified IMMIX Technology, who is a wholly owned subsidiary oflMMIX Group as the only GSA Schedule 70 contract holder authorized to resell Windchill products and services. The Original Equipment Manager (OEM) is Parametric Technology Corporation who is a large business and has authorized IMMIX Technology to resell Windchill products and services.

Although IMMIX Technology is considered a small business under several NAICS codes, it is considered a large business underNAICS Code 511210, Software Publisher which is being used to classify this procurement.

current competitors having similar products. not the

Oai'ilci;rarl<aimereawr.;(j in this effort by the Army and the Navy EULAs. These end users extensively use the CAD features of Windchill, which is not available through the competitors at this time; however. this action will allow for an on-ramp for future authorized resellers having Windchill Schedule 70 GSA contracts to be included in procurement actions.

In February 2012, A Request for Information (RFI) was posted to the NASA Solutions for Entcrprise.·Wide Procurement (NASA SEWP). The request fo r information was for vendors to respond if they were capable of providing the needed software and maintenance on the list provided. The list included the items displayed on attachment A: BOM list. No quotes were received back from the vendors within the 20 day time period.

7. Actions to Increase Competition: BPA's established off Federal Supply Schedule (FSS) contracts are required to be reviewed annually to ensure they continue to represent the best value to the Govenunent. The Govenunent will advertise future requirements on authorized portals and urge

Control No; 12-083 PmgramlItem; PTCJWindcbill

Est. Dollar Value_ companies to become authorized reseUers of these product and services. Further, it is expected the publicized award of a BPA awarded for Windchill products will generate interest amongst other IT Schedule 70 holders and encourage vendors to become authorized reseUers of Windchill products. DlACAP accreditation is required for companies that become authorized resellers of PTe W indchill products and services.

8. Otfler Facts: none

9. Technical Certification!

I certify that the supporting data under my ~::~~W;~hi~·~C~h~are~:i~nCIUded in this limited source justification are accurate and complete to the and belief.

10. Requirements Certiflcation:

1 certify that the supporting data under my cognizance which are included in this limited source justification are accurate and complete to the best afmy knowledge and belief After reviewing the requirement. and the Office of Management and Budget's July 29, 2009 letter, I hereby certify to the best of my knowledge and belief that there are no alternatives available other than an order limiting competition by brand name to fulfill this requirement

11 . Best Value Determination: I hereby determine that the order represents the best value to the Government lAW FAR 8.405-6(c)(2)(v).

Typed Name: Jill M. Sommer Title: Contract ing Officer SOMMERjILL.MARY ~'"""""""" ... -

Signature: .1228874732 ~.~.:;~:::.~..:"'·'w Date: ___________ _

12. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief, and that the anticipated cost to the Government will be fair a."d reasonable. After reviewing the requirement, and the Office of Management and

Progra.-nlItem: PTO W indchill

Est. Dol!ar Value_

Budget's 29 July. 2009 letter. I hereby certify to the best of my knowledge and belief that there are no alternatives available other than the use of an order limiting oompetition by brand name to fulfill this requirement.

Typed Name: Jill M. Sommer Title: Contracting Officer SOMMFRJILLMflRY.12 ~~.,. ... - ::~IIt';:: ;':.':::'''1l 28874732 .. , ... _,...' . ... ""',.,...""

Signature: ow. .. ,,"' ... ' .-"'W Date: ___ _______ _

Approval

Program/Item: PTe/Windchill

Est. DollarValue:_

Based on the foregoing justification, 1 hereby approve the procurement of PTe Windchill software licensing and mainlenance support under GSA Multiple Award Schedule on a limited source brand name ba.c:is pursuant to the authority of Section 803 of the National Defense Authorization Act for Fiscal Year 2002 (Pub. L. 107-107), subject to availability of funds. and provided that the services and/or supplies herein described have otherwise been authorized for acquisition.

HUTCHISON.MICHAE =:'"'~,"""'"

OM' .......... ~_""""""_ ...

Date: _ _____ _ LR.1 209241788 =,~'~'''''''''.

Michael R. Hutchison Senior Executi ve Service Principal Assistant Responsible for Contracting

Attachment A BOM

Windchill PDMLink - Idght User License

Windchill PDMLink -H~ User License

Windchill Aerospace and Defense Module -ldg!lt User License

Windchill Aerospace and Defense Module - Heavy User License

Windchilllnfo"E.!!&!ne Access - ~ht User License

Windchill Info·Engine Access - He~ User License Windchill Supplier Management - User License

ProductView Professional 32-bil

Windchill Workgroup Manager for SolidWorks

Windchill MPMLink BoM Maf!glgement 2600

Windchill MPMLink Process Planni.!!&.

Windch ill RcquircmcntsLink Standard Author

Windchill ~uirementsl .ink Author with Microsoft Word import

PTctU) Windchill Web Parts for SharePoint

13usincss R~.~rt Author

Business Report Monitor

Windchill Archive (250 User Pac.!<L

Windch ill Workgr0!!E..Man~r for ProIENGIN EER

Windchill Workgroup Manager for CATlA V4

Windchill Workgro~ Man~r for CA TIA V5

Windchill Wor~o.!:!.e.. Man~r for Un~ics

Windchill Workgroup Manager for AutoCAD

Windchill Workgro~ Mana2er for Autodesk Inventor

Windchill ECAD Wor~Man~er

Windchill (ntceration for Rational ClearCase

Windch ill DOORS Adap!er

Windchill JOBC Ad.!E!'er

Wi ndchi ll Info· Engine Java Adapter DevelQP_ment Kit

Wi ndchill PDMLink &P~~ctLink • Hea"yy" User

Windchill PDMLink &Pr.£i..cctLink -~t User

Windchill Info Engine Access

Wi ndch ill Info Engine Access - Light User

Wi ndchill R~ort Author

Windchill Repon Monitor

Workgroup Manager for lJni~l!!'Iics

Arbortcxt IETP Viewer· S 1 OOOD for Distribution

Attachment A BOM Continued:

Control No: 12·083 ProgramlItcm: PTClWin. C i

Est. Dollar Value:

ArborteXI Publisher - S 10000

Arbortext Editor - S I 0000

Arbortexi CSDB - S 10000

Arbortext IsoDraw CAOprocess _ FloatinR

Windchilil-TA (Enterorise Edition)(formerly Relcx)

Windchill FRACAS <Enterprise Editio!1Xfonncrly Rclex)

Windchill DoSim (Entcrprise Edition)(fonnerly Relex)

Windchill Failure Mode and Effects Analvsis (Enterprise Edition)

Control No: 12-083 ProgramlItcm: PTCfWindchili

ESI. Dollar Valuc_

Windchill Prediction - Base En2inc with Mechanical (Enterprise Edition)

Windchill Prediction Standard - 2 I 7 Plus Enf!;inc (Enterorise Edition)

Windchill Prediction Standard - Mil HDBK-217 Eneine (Enterprise Edition) Windchill ALERT (Entemrise Edition)

Windchill Markov (Enterorise Edition)

Wi ndchill Maintainability (Enterprise Ed ition)

Windchill Lees (Entemrise Edition)

Windchill Wei bull (Enterprise Edition)

GaJaw - Miruation Tools

Adobe 20 PDF Ootion

Altachment B Existing Windchill Licenses with Navy and Anny

Army:

WPD-CPE505{}-F Windchill PDMLink - Light User License WPD-CPE5049-F Windchill PDMLink - Heavy User License PKG-SOO4-F Windchill Aerospace and Defense Module - Light User License

PKG-SOOJ-F Windchill Aerospace and Defense Module - Heavy User License

WNX-2334-F Windchilllnfo*Engine Access - Light User License

WNX-2401 -F Windchilllnfo*Engine Access - Heavy User License

WPD-CPE5090-F Windchill Suooiier Mana2ement - User License

PKG-2435-F ProductView Professional 32-bit

WNC-2163 -F Windchill Workgroup Manager for SolidWorks

WML-50SS-F Windchill MPMLink BoM Manaltement 2600

WML-50S1-F Windchill MPMLink Process Planning

IVPD-CPE5J 12-F Windchill RequiJ"CmentsLink Standard Author

IVPD-CPE53 \3-F Windchill ReauircmentsLink Author with Microsoft Word import

PTqU) PKG-CPE6007-F Windchill Web Parts for SharePoint

PKG-219S-F Business Rcoort Author

PKG-2199-F Business Report Monitor

WNC-2420-F Windchill Archive (250 User Pack)

Programlltcm :

Est. Dollar Val

WNC-11:!6-F Windchill WOrk2:l'OUD Mansl!er for Pro/ENGINEER WNC-2140-F Windchill Workl!J'OUP Manager for CATI A V4 WNC-2175-F Windchill Workgroup Manager for CATIA V5

WNC-1141-F Windchill Workgroup Mans2cr for UniW8phics

WNC-11 33-F Windchill Workgroup Manager for AutoCAD WNC-2178-F Windchill Workgroup Mana2er for Autodesk Inventor WIC-2842-F Windchill ECAD WorkgrOUP Manager

PKG-2185-F Windchill Integration for Rational ClearCase WNA-23S2-F Windch ill DOORS Adapter WNA-2346-F Windchil l JDBe Adapter

WNA-2395-F Windchilllnfo*Engine Java Adapter Development Kit

~d Part Number I Galaxv - MilUation Tools

' ced Pan '\l umber Adobe 20 PDF Opt ion

Artachmcnt B conti nued: Navy:

Part Number

MNT-CPESOS6F-Tl· MNT-CP ESOS7 F-Tl

MNT-2334F-Tl

MNT-2401F-Tl

M NT-2198F-T2

M NT-2199F-T2

MNT-2141F-T2

MNT-7706F-T2

MNT-7704F-T2

MNT-7746F-T2

MNT·7701F·T1

MNT-7602F·T2

MNT-8622EF-T2

MNT-8603EF-n

MNT-8620EF-T2

MNT-8621EF-T2

MNT-861lEF-n

MNT-8612EF-n

MNT-S60SEF-T2

MNT-8606EF·n

MNT·8626EF-T2

M NT-8624H-T2

MNT·862SEF-T2

MNT-8627EF-T2

license

Windchill PDMUnk &Projectlink - Heavy User

Windchill PDMUnk &Projectlink - Ught User

Windchill Info Engine Access

Windchill Info Engine Access - Ught User

Windchill Report Author

Windchill Report Monitor

Workgroup Manager for Unigraphics

Arbortext IETP Viewer - 510000 for Distribution

Arbortext Publisher - 510000

Arbortext Editor - 510000

Arbortext CSOB - 510000

Arbortext IsoDraw CADprocess - Floating

Windchill FTA (Enterprise Edition)(formerly Relex)

Windchilt FRACAS (Enterprise Edition)(formerly Relex)

Windchill Op5im (Enterprise Edition){formerly Relex)

Windchill Failure Mode and Effects Analysis (Enterprise Edition)

Wind chill Prediction- Base Engine with Mechanical (Enterprise Edition)

Windchill Prediction Standard - 217 Plus Engine (Enterprise Edition)

Windchill Prediction Standard- Mil HDBK-217 Engine (Enterprise Editi)

Windchill ALERT (Enterprise Edition)

Windchill Markov (Enterprise Edition)

Windchill Maintainability (Enterprise Edition)

Windchill LCCS (Enterprise Edition)

Windchill Weibutl (Enterprise Edition)