Siemans_LSJ_signed.doc

Department of the Army

Limited Source Justification for Purchases under $150,000

Purchase Request #: W56HZV-17-T-DD03

1. Contracting Activity: The Army Contracting Center-Warren (ACC-WRN), Warren, Michigan, is the procuring activity for this action.

2. Description of Action: The Army Contracting Command - Warren proposes to award a firm-fixed-priced order for the procurement of four UG NX 3D CAD software licenses in support of Tank Automotive Research, Development and Engineering Center (TARDEC).

3. Description of the Supply or Service Purchased: TARDEC has a requirement for four additional MACH-3 + sheet metal UG NX 3D CAD software licenses, including 12 months maintenance support. These specific licenses required are for Siemens UG8 NX software. Recommended Vendor: Siemens Government Technologies, Inc., PLM Division, 1881 Campus Commons Drive, Suite 300, Reston, VA 20191-1519.

4. Dollar Amount: The estimated total purchase price is $82,328.96. FY17 RDT&E funds are available for this procurement.

5. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304 FAR 6.302-1, which states “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”. {FAR 6.302-1(a)(2)(ii)(A)}.

6. Reason for Authority Cited: The Detroit Arsenal and TARDEC’s current IT environment utilizes Siemens UG NX software purchased directly from Siemens. Continued acquisition of Siemens UGNX software is essential for CAD DATA delivery from various PMs to TARDEC for data management.

The Army has invested substantial man-hours and technical support resources to develop the current IT environment that relies on the Siemens products. Since 2012, Army has invested in Siemens software licenses, support, and on-post processors specific to NX, in addition to substantial man-hours in research, development and training.

UG NX software products are proprietary commercial software products developed by Siemens. No other contractor or distributor can legally obtain access or make duplicate copies since copyright and patent laws protect it, nor can an alternate vendor offer necessary technical support. Licenses, license renewals, and support must be directly purchased from Siemens.

Considering the amount of resources and investment that has been made in the Siemens infrastructure and training, it is neither realistic nor advantageous to replace the current software with an alternate product at this time. Award to any other source than Siemens would result in substantial duplication of cost that is not expected to be gained through competition and unacceptable delays in fulfilling the agency's requirements.

7. Market Research: UG NX software products are off-the-shelf products sold by Siemens, typically through resellers. However, it is Siemens policy to provide license renewals only to the software that was purchased directly from them. A search of GSA turned up only one reseller, Spatial Integrated Systems, INC. (SIS). A PDF of their cataog pricing is in the PCF cabinet. SIS website referred the Government to Siemens PLM Solutions since the Government purchased the current software licenses directly from Siemens. A second reseller, Saratech, was contacted by the general engineer and submitted a market research quote which also indicated maintenance would be processed through Siemans. This quote is also located in the PCF cabinet.

8. The POC for this action is Radamis Georgi at (586) 282-6234 and @us.army.mil.

9. Technical Certification: I certify this justification is accurate and complete to the best of my knowledge and belief.

Name: Radamis Georgi Title:

General Engineer Signature: //signed// Date: 01 December 2016

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

Name: Suzanne Kay Doetsch Title: Contracting Officer

Signature: //skd// Date: 17 Jan 2017