JA_LS-DYNA_FY18_v4_FINAL.pdf

Justification and Approval for Other Than Full and Open Competition LS-DYNA (Lawrence Software-Dyna) Software

1. Contracting Activity: The US Army Contracting Command – Warren, Warren, Michigan

48397-5000 is the procuring activity responsible for this action.

2. Description of Action: Approval is being requested for a new sole source, firm-fixed price contract to Livermore Software Technology Corporation (LSTC), Livermore, California (CA) for

LS-DYNA software and maintenance package. FY18 RDTE funds are available for this procurement.

3. Description of Supply: TARDEC has a requirement for 800 LS-DYNA software licenses.

LS-DYNA is an engineering Modeling and Simulation (M&S) software for structural and occupant response behavior during automotive crashworthiness and/or under body blast (UBB) events. This software is currently used at TARDEC on the High-Performance Computing (HPC) infrastructure & workstations in the classified area for automotive crashworthiness as well as underbody mine blast simulations. The estimated cost of this procurement is $445,000.00, including a Base Year of $222,500.00 and one Option Year of $222,500.00. This amount covers all license fees and all maintenance releases on the software package, along with administrative and technical support on-line and on the phone.

Recommended Supplier:

Livermore Software Technology Corporation (LSTC)

7374 LAS POSITAS RD

LIVERMORE, CA, 94551-5110,

UNITED STATES

CAGE Code: 0K410

4. Authority Cited: The statutory authority permitting other than full and open competition is

10 U.S.C. 2304 (c) (1), FAR 6.302-1, “Only One Responsible Source and No Other Supplies or

Services Will Satisfy Agency Requirements.”

5. Reason for Authority Cited: LSTC is the only vendor that can provide the services listed above. The software products and configurations covered under this contract are proprietary to

LSTC and there are no authorized resellers in the SE Michigan area who are authorized to sell to the Federal Government. The LS-DYNA software and supported applications are one of the primary RDECOM-TARDEC software packages for survivability and reliability analyses for

Army tactical and combat vehicles and their sub-systems. The services cannot be performed by any other contractor since the software is owned by LSTC. As a result only it can charge annual license fees as well as provide regular maintenance releases on the subject software. LSTC owns the intellectual property (source code) and only provides customers with compiled executables

(much like most software vendors), not the original source code. Even if the government had the necessary expertise to do so, it could not provide the services listed above.

If the government obtained similar software for the LS-DYNA software from another vendor, TARDEC would have the following issues:

a) The time that would be lost to learn the new software is one month of classroom training and an additional 1-2 months on-the-job training for the users, which would amount to 320-480 hours per analyst. This is a very conservative low estimate. These software packages require a high level of expertise and a very steep learning curve; it is not easy to switch from one to another, even for seasoned employees. During this time period, the engineering staff’s ability to attend to Program Manager (PM)/Project

Executive Office (PEO) mission needs will be severely affected adversely.

b) There are a minimum of 9 analysts associated with this switch, so 2,880-4,320 hours would be lost learning the new software. For an average hourly rate of $145 per analyst, the amount of added cost for such a transition would be, at the very minimum, around $417,600 - $626,400, in addition to training/travel costs.

c) An even bigger issue is that customer support to PM/PEO would greatly be affected during these 2-3 months, which would have an adverse effect on our mission of evaluating and designing ground vehicles.

d) LS-DYNA is being used by all sister Army agencies such as Army Research Labs

(ARL), as well as all the Original Equipment Manufacturers (OEMs) like General

Dynamics (GDLS), BAE Systems, Navistar, etc. Right now, for reasons of efficiency and commonality, M&S models are freely transferred between our Army and OEM partners, which will be severely affected if TARDEC were forced to move away from

LSDYNA. In such a case TARDEC would have to either create the models in the new software system, or find a way to convert from LSDYNA to the new system. Both of these involve considerable effort and cost. Every such system level model that needs

300 hours of effort costs $27,000 and delays customer response time by 8-10 weeks.

Again, TARDEC’s analytics mission will be severely hampered because of the numerous exchange of M&S models that happen with our Department of Defense

(DoD) and OEM partners.

e) There was an effort sponsored by the DoD/HPC office and ARL, which was long-term in nature, and ended in FY16-17. This was a multi-agency project,which cost about

$16-$20M, with the objective of transitioning from LSDYNA to a government-owned and controlled software system called “Integrated Software, for the Analysis of Blast

Effects, Library” (ISABEL) developed by Lawrence Livermore National Labs (LLNL), CA. ISABEL is not usable at this time to transition from LSDYNA to support the full end-to-end blast simulations on ground vehicles. The magnitude of this effort in time and cost is a clear indication of what it takes to switch to a different software system.

6. Efforts to Obtain Competition:

a) Effective Competition: This action is for the software, LS-DYNA, which is owned by

LSTC. LSTC is the developer and proprietor of this software and does not have any authorized resellers eligible to sell to the Federal Government. If other contractors with similar product capabilities to LS-DYNA express interest and are able to meet the requirements outlined in this contract, TARDEC is open to their qualification.

b) Subcontracting Competition: In an effort to ensure subcontracting competition, the contract will include the following provisions: FAR 52.244-6 Subcontracts for

Commercial Items and FAR 52.219-8 Utilization of Small Business Concerns.

7. Actions to Increase Competition: TARDEC is actively seeking competition. Over the course of the next few years, TARDEC will review competitive software capabilities to determine if competitive options exist.

8. Market Research: Subject matter expert opinions and research were taken into consideration which revealed no other sources for the annual license renewal and maintenance of this proprietary software. LSTC is the only contractor that is authorized to distribute the LS-

DYNA software and provide services for the volume of licenses required by TARDEC because, as owners of the source code, they own full and sole rights to the source code and the software package. Subject matter experts went through the advantages of LS-Dyna Software over other software codes and put together an information paper on the numerous advantages of using LS-

Dyna. Also, another code named Impetus was evaluated and LS-Dyna showed superior capabilities. While the research indicated that there are a few competitive products available in the marketplace, the reasons that make the switch treacherous and extremely risky are enumerated in detail in Item 5.

9. Interested Sources: To date, no other sources have written to express an interest.

10. Other Facts:

a) Procurement History: W56HZV-15-C-L623 awarded on November 1, 2015 was for the procurement of 1288 core licenses of LS-DYNA through LSTC, Livermore, CA. The estimated cost of this procurement of 1288 core licenses is $586,400, including a base year of

$293,200 and the one option year of $293,200. These license fees were for the period 1

November 2015 – 31 October 2016 with an option year of 1 November 2016 – 31 October

2017 along with support maintenance from LSTC for the period Nov 01, 2015 to Oct 31, 2017. The contract was awarded on an Other Than Full and Open competition basis pursuant to the authority of 10 U.S.C. 2304 (c) (1), FAR 6.302-1.

11. 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.

Name: Sanjay Kankanalapalli

Date: 6/11/2018

Title: Mechanical Engineer

Signature: //S// Sanjay Kankanalapalli

12. 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.

Name: Ray Samul .

Date: 06/08/2018 .

Title: IT Specialist .

Signature: // RAS // Raymond A. Samul .

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable. The price is determined fair and reasonable based on the market research quotes in comparison with previous prices paid in accordance with FAR 13.106. This action is exempt from certified cost and pricing data IAW 15.403-1(b)(3).

Typed Name: Jennifer S. Pruente

Date: 2018 June 11 .

Title: Contracting Officer

Signature: __//JSP//_____________

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

Typed Name: Jennifer S. Pruente

Date: 2018 june 11 .

Title: Contracting Officer

Signature: __//JSP//_____________

Approval: Based on the foregoing justification, I hereby approve the procurement of LS-

DYNA software licenses on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c) FAR 6.302-1, “Only One Responsible Source and No Other

Supplies or Services Will Satisfy Agency Requirements”, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

6/15/2018

X Jennifer S. Pruente

Jennifer S. Pruente

Contracting Officer

Signed by: PRUENTE.JENNIFER.SUE.1365036124