Justification ApprovalKitware.pdf

ERDC Control #: 15-010 05 January 2015

FOR OFFICIAL USE ONLY

Justification Review Document For Other Than Full and Open Competition

Requirement: The government requires Kitware, Inc. to continue the development of the DoD Computational Model Builder (CMB) for Multi-Dimensional Models.

Authority: 10 U.S.C. 2304(c)(1)/FAR 6.302- 1(a)(2)(iii)(B)/Only One Responsible Source and No Other Supplies or Service Will Satisfy Agency Requirements

Amount: $9,500,000.00

Prepared By:

Adrienne Bingham Phone: 601-634-2702 Contract Specialist Email: Adrienne.Y.Bingham@usace.army.mil Signature:

Technical/Requirements Representative:

Amanda Hines Phone: 601-634-4162 Computer Scientist Email: Amanda.M.Hines@usace.army.mil Signature:

Contracting Officer:

Kimberly L. Dulaney Phone: 601-634-3954 Contracting Officer, ERDC Email: Kimberly.L.Dulaney@usace.army.mil Signature:

I have reviewed this J&A and find the justification adequate to support other than full and open competition:

Deputy for Small Business: Phone: 601-634-3470 William D. Cantrell Email: William.D.Cantrell@usace.army.mil Signature:

Office of Counsel: Phone: 601-634-2913 Alissa H. Armstrong Email: Alissa.H.Armstrong@usace.army.mil Signature:

Center Contracting Chief: Phone: 601-634-4824 Dennis J. Beers Email: Dennis.J.Beers@usace.army.mil Signature:

Field Competition Advocate: Phone: 601-634-2870 Henry McDevitt Email: Henry.S.McDevitt@usace.army.mil Signature:

ARMSTRONG.ALISSA.H.

1386741006

Digitally signed by ARMSTRONG.ALISSA.H.1386741006 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=ARMSTRONG.ALISSA.H.1386741006 Date: 2015.01.20 11:40:50 -06'00'

DULANEY.KIMBERLY.L.1299481464 Digitally signed by DULANEY.KIMBERLY.L.1299481464 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=DULANEY.KIMBERLY.L.1299481464 Date: 2015.01.20 13:06:48 -06'00'

BINGHAM.ADRIENNE.YVETTE.1114643072

Digitally signed by BINGHAM.ADRIENNE.YVETTE.1114643072 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BINGHAM.ADRIENNE.YVETTE.1114643072 Date: 2015.01.20 13:09:36 -06'00'

HINES.AMANDA.M.1274593209

Digitally signed by HINES.AMANDA.M.1274593209 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=HINES.AMANDA.M.1274593209 Date: 2015.01.20 15:49:40 -06'00'

CANTRELL.WILLIA

M.D.1260811300

Digitally signed by

CANTRELL.WILLIAM.D.1260811300

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=CANTRELL.WILLIAM.D.1260811300 Date: 2015.01.20 16:03:27 -06'00'

BEERS.DENNIS.J.

1068004345

Digitally signed by BEERS.DENNIS.J.1068004345 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BEERS.DENNIS.J.1068004345 Date: 2015.01.21 07:23:42 -06'00'

MCDEVITT.HENRY.S

.JR.1230776349

Digitally signed by

MCDEVITT.HENRY.S.JR.1230776349

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=MCDEVITT.HENRY.S.JR.1230776349 Date: 2015.01.21 10:46:34 -06'00'

FOR OFFICIAL USE ONLY

Justification and Approval For Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Corps of Engineers, Engineer Research and Development Center (ERDC), 3909 Halls Ferry Road, Vicksburg, MS 39180-6199.

2. Description of Action: Award of a new, sole-source Firm Fixed Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract to Kitware, Inc., 28 Corporate Drive, Clifton Park, NY 12065. The estimated amount of the IDIQ contract is $9,500,000.00 with a five (5) year ordering period. Funding: R&D (21x2040); O&M, Army (21x2020); and Civil Works (96x3121).

3. Description of Supplies/Services: Research and development services to add to and improve existing capabilities and add new functionalities to the United States Department of Defense (DoD) Computational Model Builder (CMB) for Multi-Dimensional Models. The estimated amount of the proposed contract is $9,500,000.00.

4. Authority Cited: 10 U.S.C. §2304(c)(1); 10 U.S.C. §2304(D)(1)(B), as implemented by FAR Subpart 6.302-1(a)(2)(iii)(B) – Services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

5. Reason for Authority Cited:

a. The CMB is a highly specialized suite of cross-platform, client/server framework software tools to handle pre- and post-processing of various, discipline-specific ERDC-developed computer simulation models that run on DoD’s High Performance Computers (HPC). These models are applied to solve a variety of problems such as groundwater and surface water flows, heat transport, particle tracking, etc. The CMB is based on problem definition concepts that have been in use for many years in the fluid mechanics and solid mechanics disciplines. The CMB desktop applications cover the many steps necessary to pass from a conceptual description of a problem to be modeled, through mesh generation, boundary and initial condition assignment, creation of input files for a particular simulation code, and post processing. As a suite of general, multi-dimensional, open-source; graphical user interfaces (GUIs) that are configurable for different user communities, the CMB provides capability throughout the different steps of the HPC modeling processes.

b. CMB is a mixture of Commercial Off The Shelf (COTS) and Government Off The Shelf (GOTS) software solutions to HPC modeling requirements. The COTS portion was developed by Kitware, Inc. Under previous contracts over the past seven years, Kitware, Inc. has developed the entire CMB with the exception of the initial portion of development which was performed by ERDC. Kitware, Inc. is the only contractor that currently has any in-depth knowledge of the CMB source code. The ERDC currently has Government Use rights to the Kitware, Inc. source code, but has not shared the source code with any other contractor.

c. Currently there are three major research programs at the ERDC that require modifications and new development inside the CMB.

The Engineered Resilient Systems program (a DoD Science and Technology Priority Area).

o Kitware, Inc. is currently working on this requirement under Contract W912HZ-09-D-0005, Task Order 23.

o A requirement for additional work which is related to the program, but which is outside of the scope of Task Order 23 is needed. The new requirement requires a new contractual instrument to implement, however, there is insufficient time and capacity left under Contract W912HZ-09-D-0005 to issue new task orders against the requirement.

o Completion of the work on the additional requirement is already behind the customer’s desired delivery schedule. Further delays needed to compete the requirement under full and open competition and familiarize another contractor with the CMB software would create the risk of increased costs to meet the customer’s needs and would likely jeopardize program completion.

The Environmental Simulator program (part of a DoD Science and Technology Objective).

o Kitware, Inc. is currently working on this requirement under Contract W912HZ-09-D-0005, Task Orders 22 and 24.

o A requirement for additional work which is related to the program, but which is outside of the scope of Task Order 23 is needed. The new requirement requires a new contractual instrument to implement, however, there is insufficient time and capacity left under Contract W912HZ-09-D-0005 to issue new task orders against the requirement.

o Completion of the work on the additional requirement is already behind the customer’s desired delivery schedule. Further delays needed to compete the requirement under full and open competition and familiarize another contractor with the CMB software would create the risk of increased costs to meet the customer’s needs and would likely jeopardize program completion.

customer. Moreover, the amount of delays and increase in costs could lead to a complete failure of this project.

The DoD High Performance Computing Modernization Program (HPCMP).

Computational Research and Engineering Acquisition Tools and Environments – Ground Vehicles (CREATE-GV) programs.

o This is a new requirement which requires a new contractual instrument to implement, since new task orders cannot be issued against Contract

W912HZ-09-D-0005.

o To meet customer requirements, work on additional CMB development must begin on or about February 2015.

o If development does not begin in February 2015, the customer will likely incur increased costs as well as experience delays in software delivery.

d. The ERDC estimates that it would take another contractor 9-12 months to become familiar enough with the CMB source code that Kitware, Inc. has developed to continue its development. Overall, solicitation of a new contract under full and open competition, plus the period for expected familiarization with the CMB source code is expected to be 30 to 53 months. This would not permit timely start and completion of the three pending major research programs, described in Sub-Section 5.c.

e. The ERDC estimates the Government would duplicate $364K - $545K in costs if competitive procedures were used to obtain the requirements described in Sub-Section 5.c.

The estimate has been derived by calculating one DB-5 and two DB-4s for 6-9 months at a monthly rate of $26,000 and $17,333 respectively. For all previous CMB contracts and deliverables, the Government would be required to repackage and segregate of piece of code at the lowest level to ensure proper distinction and distribution of the open sourced portion.

Kitware would be required to analyze the separation and provide approval to the Government.

6. Efforts to Obtain Competition: A Notice of Intent to sole source was posted on 7 August 2014 to the Government Point of Entry (GPE) for (15) fifteen days. The notice gave potential vendors the opportunity to submit capability statements for the requirement. No responses have been received up to this time. Based on this, the ERDC does not anticipate competition to be involved in the award of a new IDIQ contract for CMB development services.

7. Actions to Increase Competition:

a. The ERDC will immediately begin development of conditions that would most likely result in increased competition in the future. Specifically, the ERDC will exercise its existing contractual rights to use Kitware, Inc.’s source code, developed up to this point, and give potential competitors the opportunity to develop viable proposals to continue the CMB’s development under competitively awarded contracts. The table below describes the major elements of the ERDC’s plan, along with an estimated time for their implementation and the completion of the process.

ACTION TIME DATES

Minimum Maximum

Gather information from past procurements such as requirements, deliverables, and intellectual property.

6 months 9 months 01 MAR 15 – 30 NOV 15

Prepare documentation for a Request for Information (RFI)

3 months 6 months 01 DEC 15 – 31 MAY 16

Posting of the RFI 3 months 6 months 01 JUN 16 – 30 DEC 16 Evaluation of RFI responses to determine capability

6 months 9 months 01 JAN 17 – 30 SEP 17

Preparation of requirements package

3 months 6 months 01 OCT 17 – 31 MAR 18

Preparation and approval of required pre-solicitation documents and solicitation

6 months 12 months 01 APR 18 – 31 MAR 19

Evaluation of proposals 1 month 2 months 01 APR 19 – 29 MAY 19 Preparation and approval of required pre-award documents and award

2 months 3 months 01 JUN 19 – 31 AUG 19

TOTAL: 30 53 31 AUG 19

b. The ERDC Chief of Contracting will at least annually report to the PARC – Winchester the progress it is being made under each major element of the plan.

c. At the end of the period of development of the plan, the ERDC Contracting Chief will brief the PARC – Winchester as to the overall results of the plan and the ERDC’s proposed follow-on acquisition actions.

8. Market Research:

a. In May 2014, the ERDC ITL communicated with IT counterparts within the ERDC to discuss sources that could provide similar services. The ERDC Contracting Office also conducted various internet searches for potential vendors.

b. The following requirements and desired vendor capabilities were applied to the market research:

1) Open source software – The ERDC requires unrestricted rights for the government and the public on any new developments or modifications to existing CMB software. This will prevent the need for a future sole source contract based on data rights.

2) Desktop and Web-based interface – Due to installation restrictions on certain IT equipment, desktop applications cannot always be utilized. Therefore, the ERDC requires both a desktop and a web-based interface for CMB products.

3) Client/Server framework – Due to the large size of the ERDC’s numerical simulation results, a client/server framework is required to ensure efficient data interaction of the results.

4) Cross-platform functional capability (i.e., Windows, Mac, and Linux) – Due to the variety of research performed at the ERDC, work is conducted on Windows, Mac, and Linux operating systems. The ERDC requires that the CMB run on all of these platforms.

Specific versions of the operating systems will be defined in individual task orders.

c. These criteria are required because the functionality in the PWS must be integrated into the current CMB suite either as modifications to the existing tools or as new tools in the suite.

Currently, there are no tools that meet these requirements and can be integrated into the CMB suite.

9. Interested Sources: The notices required by FAR 5.201 have been published (see Sub-Section 6). As of this date, no other sources have written to express interest in the requirement however, all offers received after this shall be considered.

10. Other Facts:

a. Procurement History:

(1) Last Several Awards:

i. Contract W912HZ-09-D-0005, a Firm Fixed Price Indefinite Delivery Indefinite Quantity was awarded to Kitware, Inc. on 1 September 2009 in the amount of $3,999,888.60. The contract consisted of a base year and four (4) one-year option periods. The contract expired for purposes of award of new task orders on 23 August 2014. Twenty-four (24) task orders in the amount of $2,950,660.23 were issued under this contract.

ii. Contract W912HZ-08-P-0482, a Firm Fixed Price contract was awarded to Kitware, Inc. on 27 September 2008 in the amount of $110,000.00. After two modifications, the contract value increased by $155,000.00 to $265,000.00.

iii. Contract W912HZ-07-C-0066, a Firm Fixed Price contract was awarded to Kitware, Inc. on 23 August 2007 in the amount of $1,500,000.00. After several modifications, the contract value was reduced by $985,000 to $515,000.00.

(2) Competitive status of these actions: All three (3) contracts were awarded to Kitware, Inc. on a sole source basis.

(3) Authority previously used for less than full and open competition: 10 U.S.C.

§2304(c)(l) as implemented by FAR Subpart 6.302-1(a)(iii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

(4) Summary of paragraph 7 of the J&A written in support for the sole source action: “Due to the data rights, time, and cost concerns listed in [the J&A for Contract W912HZ-09-D- 0005], this sole source requirement cannot be filled by any other company. Being a research and development organization, ERDC continues to stay abreast of technological developments, new products, equipment, materials. and supplies which may become available and can in the future be used to satisfy similar requirements.”

(5) The changed circumstances if the prior award was made by full and open competition;

Not applicable.

(6) Unusual patterns revealed by the procurement history: Repeated Agency reliance on only the Kitware, Inc. - developed CMB software solution.

(7) The circumstances cited in the J&A for Contract W912HZ-09-D-0005 justifying the buy and any significant changes:

i. It was stated that Kitware, Inc. had, for the most part, developed the software packages used in the CMB. It was “uniquely” qualified to handle the scope of [Contract W912HZ-09-D-0005]. It retained the proprietary rights to its CMB software packages. Award of the follow-on contract to any other company, would result in unacceptable delays in fulfilling the requirements described in the PWS for Contract W912HZ-09-D-0005. Award to any other company “would require an indeterminable amount of time to learn the CMB code and accompanying packages” in order to perform the same functions as Kitware, Inc. provided. Attempting to compete the requirement was expected to result in failure to meet customer milestones, “and thus result in possible future loss of funding and research.” It was speculated that giving the requirement to another company would cause “functionalities that already exist in [the Kitware, Inc. software to] be duplicated in any new development”, creating “substantial duplication of cost to the Government.”

ii. There have been no significant changes to the requirements.

b. The results of market research: The following potential tools and sources were evaluated during market research:

(1) XMS suite (Groundwater Modeling System, Surface-water Modeling System, and Watershed Modeling System tools) – developed by Aquaveo. The XMS suite fails to meet two of the market research requirements. The suite is proprietary software and it only runs on Windows operating systems. The ERDC needs to support modelers that run on Windows, Mac, and Linux operating systems. Since the XMS tools only run on Windows, they cannot support all of the ERDC’s users.

(2) Capstone – developed by the HPCMP CREATE-MG (Meshing and Geometry) group.

Development of Capstone has been focused on supporting other areas of the CREATE program including ships, air vehicles, and RF antennas. It would require a significant duplication of effort to support the workflow currently existing in the CMB Suite.

However, the ERDC is leveraging Capstone capabilities that do not currently exist in the CMB by integrating with the Capstone Software Development Kit (SDK). The ERDC plans to continue with this integration as needed to prevent duplication of effort and cost to the Government.

(3) Gmsh – Developed by Christophe Geuzaine and Jean-Francois Remacle. Gmsh is licensed under the GNU (GNU’s Not Unix) General Public License (GPL), which prevents it from being integrated into closed-source software.

c. Acquisition data availability: Technical data packages, specifications and a performance work statement, suitable for full and open competition, will be prepared for the follow-on activities to this requirement in accordance with Section 7.

d. Unusual and compelling urgency: N/A

e. Subcontracting Competition: Kitware is a small business. A subcontracting plan is not required per FAR 19.702(b)(1).

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

Name: Amanda Hines Title: Computer Scientist Signature:

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

Name: Amanda Hines Title: Computer Scientist Signature:

3. Fair and Reasonable Cost Determination: I herby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based on the Independent Government Estimate, historical pricing, and data other than certified cost or pricing data. Certified cost and pricing data will be required in accordance with FAR 15.403-4.

Name: Kimberly Dulaney Title: Contracting Officer Signature:

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

Name: Kimberly Dulaney Title: Contracting Officer Signature:

DULANEY.KIMBERLY.L.1299481464

Digitally signed by DULANEY.KIMBERLY.L.1299481464 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=DULANEY.KIMBERLY.L.1299481464 Date: 2015.01.12 09:53:13 -06'00'

DULANEY.KIMBERLY.L.129948

Digitally signed by DULANEY.KIMBERLY.L.1299481464 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=DULANEY.KIMBERLY.L.1299481464 Date: 2015.01.12 09:53:39 -06'00'

HINES.AMANDA.M.1274593209

Digitally signed by HINES.AMANDA.M.1274593209 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=HINES.AMANDA.M.1274593209 Date: 2015.01.12 12:47:42 -06'00'

HINES.AMANDA.M.12745932

Digitally signed by HINES.AMANDA.M.1274593209 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=HINES.AMANDA.M.1274593209 Date: 2015.01.12 12:47:57 -06'00'

Approval

Based on the foregoing justification, I hereby approve the procurement of services for the DoD Computational Model Builder (CMB) for Multi-Dimensional Models in the amount of $9,500,000.00 with a five (5) year ordering period on a Other Than Full and Open Competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1) and Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(B), subject to the availability of funds, and provided the property herein described has otherwise been authorized for acquisition.

John H. Teetsov Principal Assistant Responsible for Contracting - Winchester Directorate of Contracting (DoC)