NSWC-PHD-JA-25-004_Final_10222024_Redacted.pdf

Navy Marine Corps Acquisition Regulation Supplement APRIL 2018 (Change 18-24)

J&A No. NSWC-PHD-JA-25-004

Internet Protocol, allows users to make and receive calls using the internet instead of traditional phone lines by converting voice calls, faxes and other information into digital signals transmitted through the internet.

AT&T has begun NSWC PHD’s transition from TDM services to IP services under the current contract. Since the mandated switch is anticipated to be complete in 2026 and to ensure no communication disruptions, a follow-on is required to maintain the current TDM service connectivity while simultaneously continuing to transition from TDM services to IP services.

Furthermore, since the current telephone infrastructure and equipment installed aboard NBVC up-to-and-at the demarcation point is owned and operated by AT&T and since no other service provider can utilize AT&T’s infrastructure and equipment to maintain current TDM services while simultaneously transitioning to IP services, no other service provider can meet NSWC PHD’s needs. In other words, using another service provider to maintain current TDM services during the transition would require NSWC PHD to procure new infrastructure and equipment resulting in a substantial duplication of cost and a loss of communication at the Command while the new infrastructure and equipment is implemented. Likewise, if NSWC PHD were to use another service provider to conduct the transition from TDM services to IP services while AT&T maintained TDM services, NSWC PHD would again need to procure new and duplicative infrastructure and equipment to maintain current services with AT&T while allowing another service provider to install its own infrastructure and equipment to implement IP services. Not only would this result in a substantial duplication of cost, but also there is a chance that the transition would not be seamless since two different sets of infrastructure and equipment would be used. Based on this, the substantial duplication of cost would be approximately $2.4M that is not expected to be recovered through competition (estimated at $600 per line) and there would be an unreasonable delay of more than a few days resulting in a disruption of communication across the entire command.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

A Sources Sought Notice was posted to the Governmentwide point of entry (GPE), SAM.gov, on 11 October 2024 with a closing date of 21 October 2024. The only response received was from AT&T. AT&T was determined to be capable to perform the requirements. No additional market research was conducted since it is not practicable, based on the reasons discussed in Paragraph 5 above, for any company other than AT&T to provide the required services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this Justification and Approval will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reason set forth in Paragraph 5, NSWC PHD limited services to a one-year base period and one-year option period to allow for future competition to support services covered by this document. If any potential sources emerge, NSWC PHD will assess whether competition for future requirements is feasible.