JA-STARCCM-2017_19_Mar_SKD.docx

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL FOR OTHER

THAN FULL AND OPEN COMPETITION

Purchase Request #: 10996777

1. Contracting Activity: U.S. Army Contracting Command – Warren is the procuring activity for this action.

2. Description of Action: The proposed is to issue a Firm Fixed Price contract to renew the purchase of Star CCM+ software and maintenance support from Siemens Product Lifecycle Management (Siemens), Digital Factory Division.

3. Description of the Supply or Service Purchased: This proposed action is for annual renewal for software licenses with one Option Year:

Base Year:

· Five (5) STAR-CCM+ Single Session Annual floating license renewals

· Four (4) STAR-CCM+ Power Session Annual floating license renewals

Option year:

· Five (5) STAR-CCM+ Single Session Annual floating license renewals

· Four (4) STAR-CCM+ Power Session Annual floating license renewals

The estimated total procurement price is $215,425.00 per year, for a total of $430,850.00 for this contract including the Option. FY17 RDT&E (2040) funds will be utilized for the base year.

Recommended supplier:

Siemens Product Lifecycle Management 5800 Granite Parkway Suite 600 Plano, TX, 75024-6612

CAGE: 1HCQ1

4. Authority Cited: Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”. Specifically, FAR 6.302-1(c) provides that a brand name item can be obtained if the use of the brand name is essential to the Government’s requirements; thereby precluding consideration of a product manufactured by another company.

5. Reason for Authority Cited: Star CCM+ is a product of Analysis & Design Application Co. Ltd. (referred to herein as CD-adapco), which was acquired by Siemens. In a 06 March 2017 phone conversation with Pat Wyman, senior account manager for Siemens Product Lifecycle Management Software Inc., Pat stated the effective date of the sale was 01 January 2017.

Star CCM+ is essential to the Government’s requirements. It is unique in that it streamlines the Computational Fluid Dynamics (CFD) simulation process by combining multiple steps into one user interface. This licensing scheme interfaces with the High Performance Computer (HPC) and is much more economical than similar software. Star CCM+ was created to take advantage of the capabilities of multi-processor computers. TARDEC uses HPC hardware resources at Army Research Labs & Air Force Research Labs that are ideally suited for this type of capability. Star CCM+ Power Sessions allow an unlimited number of processors to be utilized for each simulation job at no additional cost.

TARDEC and CD-adapco have spent the last four years incorporating enhancements, such as fire suppression capability, to the STAR-CCM+ software in use by TARDEC. It is not currently available in any other CFD code and therefore is unique to the Army. Selection of another product would result in a duplication of cost (over $500,000.00) that would not be recouped through competition and would unacceptably delay the program and the mission. This estimate includes procurement of an alternate software product plus the time and cost for redevelopment of software enhancements to match current capabilities, re-training TARDEC engineers to use the alternate software, and time to conduct and analyze case studies. Significant delays would occur before another source could develop the expertise and knowledge developed by CD-adapco in providing the specialized computer software licenses and maintenance. Delaying this procurement will also cause discontinuity in the support TARDEC provides to its customers and associated partners.

6. Effort to Obtain Competition:

a. Effective Competition: Siemens is the only company that can provide Star CCM+ software and maintenance support. Siemens does not have resellers for their products. Responses to this requirement will be limited to Siemens.

b. Subcontracting Competition: FAR 52.219-8 Utilization of Small Business Concerns, and FAR 52.219-9 Small Business Subcontracting Plan, will not be included in the solicitation as the action meets the definition of a simplified commercial acquisition pursuant to FAR 13.500.

7. Actions to Increase Competition: This requirement will be publicly posted on Federal Business Opportunities website (FedBizOpps) for interested and capable parties that qualify. Any responses will be considered.

8. Market Research: The initial identification of need for such software began in 2008. This is highly specialized software and the market is small. Numerous software companies were contacted and a survey of software cost and capabilities was conducted. Market research initially performed between several software packages including Star CCM+, FLUENT, CFD-ACE, Dytran, and CFX resulted in the selection of Star CCM+ based on the cost and capability that it could offer compared to other software. Market research is ongoing through conference participation, symposiums, and discussions with related industry entities.

For this acquisition, TARDEC Analytics evaluated the capabilities of Simerics CFD software in October 2015 and found, while the cost of the software is on par with STAR-CCM+, it does not have the simulation features that are required to meet TARDEC needs. In April of 2016 TARDEC Analytics reviewed SC/Tetra CFD software, and determined it cannot meet TARDEC analysis needs because it does not have the capability to model the fire suppression, which is a unique requirement for Army. In May 2016, TARDEC Analytics evaluated the capabilities of the OPENFOAM CFD from ESI Company and the software does not have the capability to simulate the problems of interest to TARDEC in the areas of Hydrodynamics and fire suppression. As of Feb 2017, a survey of the market revealed no new developments that change the market conditions. The engineering analysis of available software is in the electronic contract file for this action.

9. Interested Sources: To date, no other sources have written to express interest. Siemens is the only vendor of the software being sought pursuant to this Justification and Approval.

10. Other Facts:

a. Procurement History

(1) Contract: W56HZV-14-C-L703 Award Date: 09 December 2013 Contractor: Analysis & Design Application Co. Ltd.

This requirement was posted on Federal Business Opportunities website (FedBizOpps) asking for interested and capable parties that qualify to respond. To date, no other sources have written to express interest.

The circumstance justifying this procurement is CD-adapco is the creator and sole provider of the Star CCM+ software. FAR 6.302-1(a)(2)(ii)(A) provides that supplies may be deemed to be available from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Per DFARS 206.303-2, the Justification and Approval for Other Than Full and Open Competition is in the contract file.

Competitive Status: Sole Source Authority: FAR 6.302-1, Only One Responsible Source This requirement was posted on Federal Business Opportunities website (FedBizOpps) asking for interested and capable parties that qualify to respond. To date, no other sources have written to express interest.

The circumstance justifying this procurement is CD-adapco is the creator and sole provider of the Star CCM+ software. The initial need for such software began in 2008. Numerous software companies were contacted and a survey of software cost and capabilities was conducted. The best-value software at the time was Star-CCM+. This is highly specialized software and the market is small.

b. Other facts. Previous contracts were awarded to Analysis & Design Application Co. Ltd. (CD-adapco). In 2016, Analysis & Design Application Co. Ltd. was acquired by Siemens Product Lifecycle Management, with 01 January 2017 as the effective date of the sale. The contract for this current requirement will be awarded to Siemens Product Lifecycle Management.

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

Name: Vamshi M. Korivi Title: Mechanical Engineer, Analytics Signature: //s// Date: 23rd February, 2017

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

Name: Vamshi M. Korivi Title: Mechanical Engineer, Analytics Signature: //s// Date: 23rd February, 2017

13. Fair and Reasonable Cost Determination: Include the following determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Provide the basis for this determination (e.g., describe techniques to be used to determine fair and reasonable price, such as cost analysis, price analysis, audit, should cost, independent Government estimate, etc.). As part of this basis, indicate whether certified cost or pricing data will be required or if one of the exceptions in FAR 15.403 will apply.

14. Contracting Officer Certification: This certification shall be made by the contracting officer who will sign the contract resulting from this justification and approval. Include the following statement:

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

Approval Based on the foregoing justification, I hereby approve the procurement of Star CCM+ software and maintenance support on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date: 19 Mar 2017 Signature: //skd// Suzanne Kay Doetsch, Contracting Officer