A03_REDACTED_JUSTIFICATION_AND_APPROVAL.pdf

JA Control Number: JA-18-E-322

Program: DCGS-A

Version - March 2017 FOR OFFICIAL USE ONLY

Product: Harris Geospatial Solutions ENVI Products and Maintenance

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND

OPEN COMPETITION

Program/Equipment: Distributed Common Ground System-Army (DCGS-A) / Harris

Geospatial Solutions (HGS) ENVI Software Licenses and Software Maintenance

Authority: 10 U.-S.C. 2304(c)(l), as implemented by FAR 6.302-1-Only One Responsible

Source and No Other Supplies or Services Will Satisfy Agency Requir ment.

Amount:

Prepared by:

Contracting Officer:

Technical:

Technical:

Requirements:

Software Engineering Center (SEC)

Centralized Acquisition License

Management (CALM) Action Officer

Email:

Contracting Officer

Email:-

PM DCGS-A Software Licenses Lead

SEC IEWS-D Contracts/Licenses Manager

Lead Software License Acquisition Team

DSN:

Date: l4Mar2018

Date: 12 April 2018

Date: 03 Apr 20 I8

Date: 29 Mar 2018

Date:

Reviews: I have reviewed this justification and find it adequate to support sole source.

Program Manager:

Program Manager:

Legal Counsel:

Competition Advocates Office

Product Harris Geospatial Solutions ENVI Products and Maintenance

FAR PART 6. JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Center- Aberdeen Proving Ground Division E

6565 SL1rveillance Loop, Building 600 I

Aberdeen Proving Ground, Maryland 21005

2. Description of Action: The CECOM Sothvare Engineering Center (SEC) in support of the

Distributed Common Grounds Systems-Army (DCGS-A) program requests a Firm-Fixed-Price contract with Harris Geospatial Solutions' (HGS) 385 lnterlocken Crescent, Suite 300

Broomfield. CO 80021. The Government projects an estimated award date on or before 01 May

2018 and FY2018 Operation Maintenance, and FY2018 Other Procurement, Army (OPA) 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: The government uses HGS' Environment for Visualizing

Images (ENVI) Interactive Data Language (TDL), ENVI National Imagery Transmission Format

(NITF), ENVl Digital Elevation Model (DEM) Extraction, and ENVI Feature Extraction COTS soft\vare licenses and support maintenance. The applicable North American Industrial

Classification Systems (NAICS) code for this requirement is 511210- Software Publisher. The requirement is for 789 licenses with software maintenance. and software maintenance renewal of 1,21 l existing licenses. The Period of Performance is one base year, 01 May 2018 through 30 April 2019, with four one-year options through 30 April 2023. The base year includes the new licenses and software maintenance. The option years include only software maintenance."

Base Period: 01 May 2018 through 30 April 2019

Option Period 1: 01 May 2019 through 30 April 2020

Option Period 2: 01 May 2020 through 30 April 2021

Option Period 3: 01 May 2021 through 30 April 2022

Option Period 4 0 l May 2022 through 30 April 2023

Value:

Value:

Value:

Value:

Value:

Total:

Product: Harris Geospatia! Solutions ENVI Products and Maintenance

4. Authority Cited: 10 U.S.C. 2304(c)(l), as implemented by FAR 6.302-1. Only One

Responsible Source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited:

(a.) ENVI products, as part of the DCGS-A baseline system fielded to the Warfighter including forces in overseas contingency operations. provide a software solution for processing and analyzing geospatial imagery used by image and intelligence analysts. ENVI combines spectral image processing and image analysis technology in an interface to produce meaningful information from imagery, gaining quick, accurate answers to assist Warfightcrs in their decision making process. ENVl provides analysts a robust suite of image processing and analysis tools to support image exploitation workOows. HGS is the sole software publisher of the ENVI products.

New software licenses, and software maintenance must be purchased to support the fielding of

DC.GS-A. lfthc maintenance renewals are not purchased, the Warfighter will not have access to the latest software product updates, security and functional patches.

On 09 February 2018 HGS submitted a letter declaring that HOS is the exclusive manufacnirer, developer, direct sales channel and distributor for IDL®, ENVI®. ENVl

Engine, IDL Engine, and Gcospatial Services Framev.rork (GSF} software in the United States.

HGS is the sole source supplier for these software products in the United States and Canada, and utilizes no other authorized third party distributors, resellers. or agents.

If the Government were to attempt to replace the functionality of the ENVI products, it would require extensive research, functional testing, and developmental efforts to re-engineer, which would be followed by production and certification testing efforts. This require significant funding and a minimum development time , resulting in unacceptable delays in fulfilling the requirement.

Below reflects a Rough Order of Magnitude, which estimates this total replacement cost at This duplication of cost could not be recouped through price competition.

Harris Geospatial Solutions, Inc. is the sole software publisher of the ENVI suite of products.

Exelis Visual [nformation Solutions changed the company name to Harris GeoSpatial

Solutions, Inc. on 11 January 20 l 8. The use of a sole source description in this acquisition is

Product Harris Geospatial Solutions ENVI Products and Maintenance essential to the Government's requirements. thereby precluding consideration of a product manufactured by another company. On 09 February 2018, Harris submitted a letter declaring that HGS is the exclusive manufacturer, developer, direct sales channel and distributor for

JDL®. ENVl®, ENV[ Engine, IDL Engine, and Geospatial Services Framework (GSF) software in the United States. HOS is the sole source supplier for these software products in the United States and Canada, and utilizes no other authorized third party distributors, resellers, or agents.

The Rough Order Magnitude (RoM) estimate to develop a comparable system is as follows;

Engineering:

Configuration management:

Engineering Verification & Validation

Information Assurance lntegration

Organization Support

!AVA:

DAMI GE Certification

Fielding, Training and Support

Total Est. Cost of Reengineet:ing Effort

Summary: Total Cost is and the timeline to replace 1mits in the field is

(b) Alternates: PM DCGS-A evaluated some of the alternative software products on the commercial market such as Intergraph and Mapinfo that offer similar desktop Geography

Information System (GIS) products and features. Intergraph and Maplnfo do not contain image analysis software, which provides a powerful application program interface (API) like

ENVI. The ENVl software allows the Warfighters to extract meaningful information from imaginary to make better intelligent decisions.

JA Control Number; JA-18-E-322

The PM DCGS-A Configuration Control Board selected ENVI software to replace the

ER.DAS Imagine products previously fielded in the baseline as a cost effective replacement, providing the right functionality necessary for the DCGS-A to improve supp?rt the Army's intelligence, surveillance, and reconnaissance (ISR) mission at the lowest pnce to the government.

6. Efforts to Obtain Competition: the Contracting Officer shall publish the notices required by

FAR 5.201 and any bids or proposals received will be considered.

a. Effective Competition: Based on the information in paragraph 5 above, this is sole source proprietary COTS requirement, effective competition is not feasible.

b. Subcontracting Competition: This is a sole-source proprietary COTS product line and

Harris GeoSpatial Solutions, Inc. has made a business 'decision to keep the product line proprietary.

7. Actions to Increase Competition: SEC CALM perfonns market research on all new requirements each year to verify who owns the licenses and software support rights, who can supply the product(s) to the Army and if there are any alternate sources of supply or COTS products.

Harris GeoSpatial Solutions has confirmed that the that can only be purchased directly from HGS, and that HGS does not have any . A sole source letter, dated 9 February 2018 was provided. However, SEC CALM received the budgetary quotes from the vendors that are listed in section 8. SEC CALM contacted Harris

GeoSpatial Solutions regarding the resellers and SEC CALM received this response from Harris

GeoSpatia[ Solutions "We have no agreements in place with other vendors to resell ENVI.

However vendors can come to us, request quotes independently, and then requotc and sell the products to their commercial customers. In that scenario though, no margin discounts or special pricing arrangements arc provided,"

8. Market Research: Market research was performed by the SEC CALM Team in January 2018 with the determine if there were authorized distributors, of ENVI to increasing participation by small businesses, small disadvantaged small business, HUBZone, certified 8 (A), Service

Disabled Veteran Owned, and Woman Owned Businesses. SEC CALM was also looking for companies that could potentially provide alternate COTS products to .HGS' ENVJ softwtlre suite.

Searches were performed on the Army Computer Hardware Enterprise Software Solutions

(CHESS) (RFQ#2289022) on 24 January 2018, National Aeronautics and Space Administration

(NASA) Solutions for Enterprise Wide Procurement (SEWP) (RFQ#80096) on 11 January 20 I 8, and Genera! Services Administration (GSA) Advantage (RFQ# 1259614) on I I January 2018, all

Product: Harris Geospatial 5olutions ENVI Products and Maintenance requesting current budgetary pricing for the required ENVI software.

On 05 April 2018, the contracting center issued a synopsis ofihe requirement asking for any vendors that could supply the HGS COTS ENVI products and services or an alternate COTS software. The synopsis closes 16 April 2018. To date, no one has relied to the synopsis.

However, should any vendor prove they can sell the HGS COTS software products to the Army or should any developer offer an alternate COTS product with pricing and sufficient technical details their technical proposal will be considered.

The searches for ENVl software on the CHESS website resulted in a Statement of Non

Availability, Number 216730472, dated 13 February 2018 being issued for this requirement The searches on NASA SEWP and GSA Advantage websites resulted three budgetary quotes on

NASA SEWP. Below is the list of the vendors who responded to lhe postings with the budgetary quotes:

Comganv Name Contract Business Categot):'.

Harris Geospatial Solutions, Inc. GS-35F-0265T Other Than Small Business

Namtek, Corporation NNG15SD36B Service-Disabled Veteran-O\vned

Small Business

New Tech Solutions, Inc. NNG\5SC82B Small Minority Owned Bllsincss

New Tech Solutions, Inc. Open Market Small Minority Owned Business

Blue Tech, Inc. NNGt5SC63B HUBZone and Women Owned

Small Business

Harris Geospatial Solutions was contacted for a list of authorized resellers for this product. A sole source letter was provided and ln response to question about resellers, HGS stated '"We have no agreements in place with other vendors to resell ENVI. However vendors can come to us, request quotes independently. and then requote and sell the products to their customers. In that scenario U1ough, no margin discounts or special pricing arrangements are provided."

PM DCGS-A has done a research to find the alternative software products. The result of the research showed that Intergraph and Maplnfo offered similar desktop GlS product, but none of them offered an image analysis software that provided powerful API like ENVL

9. Interested Sources: To date, no other sources have written to express interest in the acquisition beyond the vendors listed in paragraph 8.

10. Other Facts:

a. Procurement History:

Contract/DO Number Contractor Award Date Procurement Type

W56JSR-l4-C-0008 Exelis Visual Information

Solutions, Inc.

31 July20l4 Sole Source

FAR6.302-I

Exelis Visual Information Solutions changed the company name to Harris GeoSpatial Solutions, Inc. on 11 January 2018

b. Market research from contract W56JSR-14-C-0008

Market research was performed by the SEC-CALM Team in February 2014. No other software that suppmts the DCGS-A system was identified that could meet the Government's requirement.

Only the manufacturer Exelis Visual Information Solutions, Inc. can provide the required product with a cost effective pricing. The manufacturer's pricing savings are available through Open

Market only. These items have been quoted off of NASA SEWP and CHESS contracts as well, but not off of any GSA contract vehicle. Results were received for the Exelis ENVJ annual software maintenance renewals that were found to be available on two Blanket Purchase

Agreements (BPA) with two different vendors. A CHESS Statement of Non-Availability (SoNA) was provided based on the manufacmrer's quote. It was approved through item numbers

216621723 and 216621746. Searches of the GSA Advantage, CHESS. and NASA SEWP websites returned the listings for ENVI software maintenance products as listed below:

Exelis Visual Information Solutions Sole Source

Four Points NNG07DAl6B

NetCentric W91QUZ-1 l-D-001 l

ActioNet W91QUZ-ll-D-000l

GSA Not Available on any contracts

11. Technical Certification: I ce11ify 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.

Technical Certification: SEC IEWS

Technical Certification: DCGS-A

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

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 based on.

This determination will be made using the following: XXX price analysis ( ) cost analysis

0 IGCE O audit: 0 other:

As a pai1 of this basis, certified cost or pricing data is not required because the item and /or services being acquired are considered commercial.

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

Competition Advocates Office