4.7 J&A FINAL_7MAY2026_Redacted.pdf
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- Attached to
- WIRED TELECOMMUNICATION SERVICES
- Solicitation number
- 26-0040
About this file
This is a Justification and Approval (J&A) document for a non-competitive sole source contract award. The Department of the Navy, through Naval Supply Systems Command (NAVSUP) Fleet Logistics Center Sigonella Rota Detachment, intends to issue a Firm Fixed-Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) commercial contract to Telefonica de España (Telefonica) for fixed-line telecommunications services at Naval Station (NAVSTA) Rota, Spain. The contract period runs from 25 June 2026 through 24 June 2031, with an estimated total value of €4,350,755.27 (approximately $4,676,722.86 USD), distributed across five fiscal years ranging from approximately $872,121.70 to $1,000,779.71 annually.
The required services include standard commercial telecommunications services such as Public Switched Telephone Network (PSTN) trunks with Integrated Digital Services Network Primary Rate Interface (ISDN PRI) service, PSTN number assignments and lines, fiber optic cable installation and maintenance, Gigabit Passive Optical Network (GPON) service, ISDN Basic Rate Interface (BRI) video teleconferencing, and Point-to-Point circuits at NAVSTA Rota. The statutory authority cited is 10 U.S.C. 3204(a)(1). The sole source justification is based on Telefonica's ownership of approximately 100 percent of the underground conduit system and copper cable infrastructure on base, combined with their refusal to grant third-party access to this infrastructure. The government conducted market research since 2015 and issued a Sources Sought Notice on 25 February 2026 with no responsive capability statements received. The Contracting Officer has determined the anticipated cost to be fair and reasonable, and the contract will be funded in local Euro currency at an FY26 exchange rate of $1.00 = €0.9303.
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stated that the market for fixed-line services has not changed and confirmed The current BCO, Mr. John Reese, validated that, to date, nothing has changed.
Nevertheless, the Government made a good faith effort to identify potential providers by issuing a notice SAM.gov on 25 February 2026, pursuant to DFARS PGI 206.302-1(d). This Sources Sought Notice announced that the Government intended to issue a sole source contract to Telefonica and incorporated a Request for Information asking interested parties submit capability statements that adequately addressed their ability to deliver these services. To date, no capability statements have been received.
7. Determination of Fair and Reasonable Cost.
The Contracting Officer has determined the anticipated cost to the Government of the supplies and services covered by this J&A will be fair and reasonable.
8. Actions Taken to Remove Barriers.
As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.303-2(B), the prior J&A, #21-0100 (see e-file 1.1e J&A_Att_1_21D6004_FINAL) is included for determining whether the planned actions to remove any barriers to competition were completed. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).
Presently, it is not feasible to remove barriers to competition regarding the fixed-line telecommunications services, as the market barriers are primarily the result of Telefonica being a long-term government-owned telecommunications monopoly in place when the infrastructure at NAVSTA Rota was installed and ownership rights retained by the company. Telefonica owns and operates the vast majority of infrastructure on base that supports fixed-line telecommunications services. It is simply not economically feasible for another company to compete for the required services especially because Telefonica has indicated to the Government that it will not allow third party access to the infrastructure on NAVSTA Rota that it owns. These conditions are not expected to change in the future because this contract will not modify or augment the existing underground conduit system or copper cabling system in place.
The Government previously initiated actions to remove barriers by separating the mobile telecommunications portion of this requirement and attempting to compete in FY16, FY21 and FY26. Additionally, there is a separate contract for telecommunication cabling and wiring requirements, N6817125D6001, but it is heavily focused on data lines and not telephone systems; thus, it is highly unlikely to impact the existing telephone infrastructure in a meaningful way.
Nevertheless, if another potential source emerges, the Government will assess whether competition for future requirements is feasible.
File details come from the government source that posted it. Updated .