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This has been resolved. We were not using the correct application name. It had to be specified in such and such a way.
s2sCredential = new S2SFdkCredential("aUser", "orclapplicationcommonname=s2stestapplication,cn=ifs,cn=products,cn=oraclecontext","welcome1", null);
mgrFactory = ManagersFactory.login(s2sCredential, WS_HOST);