JA15-022A_Revised_Redacted.pdf

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HC1047-09-C-4000 Modification for phase 2 OTN Upgrade-JA15-022A

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JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Purchase Request Number:

Contract Number: HC1047-09-C-4000 Modification Number: P000TBD Procurement Title: 100G P-OTN Optical Network Enhancement for CONUS Contracting Office: DITCO NCR – PL64 Estimated Value:

Statutory Authority: 10 U.S.C. 2304(c) (1)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: JA15-022A

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate (PACA), hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 10 U.S.C. 2304(c)(1) (FAR 6.302-1), only one responsible source and no other type of supplies or services will satisfy Agency requirements.

JUSTIFICATION AMENDMENT (A)

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

The Requiring Office is:

Defense Information Systems Agency Information System Network (DISN) Center for Communications (NS1) Implementation and Sustainment Center (ISC) Infrastructure Directorate (IE) P.O. Box 549 Ft Meade, MD 20755-0549

The Contracting Office is:

Defense Information Systems Agency Defense Information Technology Contracting Organization (DITCO) National Capital Region (NCR) PL61 Branch P.O. Box 549 Ft Meade, MD 20755-0549

2. NATURE/DESCRIPTION OF ACTION(S): In accordance with DISA Acquisition Regulations Supplement (DARS) 6.303-1(S-93) (1), the Procurement Services Directorate (PSD) requests to amend the previously approved Justification and Approval (J&A) JA15-022 dated 6 January 2015 to reflect the actual contract value of the modification.

. After lengthy negotiations the total evaluated price of has been determined fair and reasonable and in the best interest of the Government.

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The purpose of this J&A is to obtain approval for modification to existing contract HC1047-09-C- 4000 between DISA and Qwest Government Services, doing business as CenturyLink QGS to increase the contract ceiling by an estimated . Increasing the contract ceiling by is expected to satisfy the DISN-NS1 program requirement to enhance and replace the existing Defense Information System Network (DISN) CORE 10G Corestream optical transport networks with a 100G 6500 Packet -Over Transport Network (P-OTN) between the South East Region legacy segments Links 7 & 11 on the Next Generation DISN Optical Network. All other clauses and requirements of the existing contract remain in force. This requirement is a Bona Fide Need subject to the Economy Act. The Army is requesting DISA procure and install 100GB Optical Switches to the Department of Defense Information Network (DODIN). DISA intends to fulfill these requirements through the existing firm-fixed price contract utilizing FY14 Procurement funding.

3. DESCRIPTION OF SUPPLIES/SERVICES: The U.S. Government has a telecommunications Network Enhancement requirement described herein to enhance and replace the existing Defense Information System Network (DISN) CORE 10G Corestream optical transport networks with a 100G 6500 Packet -Over Transport Network (P-OTN). The technical refresh shall entail the removal of obsolete equipment, purchase of new equipment, and installation of said equipment at the targeted facilities for which the IRU fiber strands intersect between the South East Region legacy segments Links 7 & 11. The technical refresh will transform the existing 10 Gigabyte/second (“10G”) Corestream Optical Transport Network to 100 Gigabyte/second (“100G”) 6500 Packet-Optical Transport Network thereby enhancing all equipment covered under the Government Indefeasible Right of Use (IRU) fibers and transfer services to the new technology between the following CONUS locations: Kelly AFB, TX, Bacon Ridge, TX, Kirtland AFB, NM, FT. Carson, CO and Buckley AFB CO. Contract HC1047-09-C-4000 provides for separately negotiated orders or modifications for network enhancement task(s) within an overarching scope of work. Page 11 paragraph 5.1(Network Upgrade) of the 2008 Performance Work Statement (PWS) states that:

“The Government may issue an order(s) to the contractor requesting a proposal(s) to engineer, furnish and install equipment or fiber. The Government will provide site locations(s), user needs and other pertinent information in the request for studies or proposal. ”

The Government intends to issue a request for proposal to CenturyLink, to complete all requirements in accordance with the PWS entitled “Technical Refresh 100G Packet Optical Transport Network (P- OTN) Enhancement” dated 12 December 2014 to execute a technical refresh for various telecommunications equipment at existing facilities, all of which are covered under an existing Government Indefeasible Right of Use (IRU) along South East Region legacy segments Links 7 &

11. The equipment shall be included in the normal maintenance and repair cycle as required under the contract. The cost increase to the contract is estimated at

4. IDENTIFICATION OF STATUTORY AUTHORITY: 10 U.S.C. 2304(c)(l), as implemented at FAR 6.302-1 - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements: the supplies or services needed by the agency are available from only one responsible source and no other type of supplies or services will satisfy the needs of the agency.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events.

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The contract, executed per Acquisition Plan, Memorandum of 24 October 2008 for the Major Automated Information System – Acquisition Category (MAIS-ACAT) 1AM Program, acquired dedicated commercial carrier fiber infrastructure assets via a capital lease for a 10-year period under a 20 year Indefeasible Right of Use (IRU). It also provides for professional services and Operation and Maintenance (O&M) support. The base period of the contract was for one (1) year, with nine (9) option years. The Government has a requirement to enhance and replace the equipment on its current Optical Transport Network (OTN) operated and maintained under this contract from 10G Corestream Optical Transport Network to a 100G 6500 Packet - Over Transport Network (P-OTN) equipment to include the enhancement of all current amplifiers, regenerators, and other equipment on the Government Indefeasible Right of Use (IRU) fibers along Links 7 & 11.

(b) Justification:

(1) Minimum Government requirements. The contractor is to provide equipment and installation of the equipment to support the U.S. Government’s telecommunications Network Technical Refresh Enhancement requirement. The contractor shall replace all current amplifiers, regenerators, and other equipment on the existing DISN CORE Corestream Optical Transport Networks (OTN) with new 6500 P-OTN equipment in order to provide higher bandwidths and greater capabilities.

(2) Proposed sole source contractor. CenturyLink provides to the Government a single strand on their multi-strand fiber cable for dedicated DOD communications. The equipment required to operate the fiber is housed in contractor-provided buildings throughout the network. Access to the buildings is controlled by CenturyLink, which has the unique physical access and technical knowledge to repair and maintain components of the DISN to continue to meet the Government’s needs (performance, security, reliability, availability and sustainability) for a telecommunications network within the established DISN security guidelines. CenturyLink is able to access the equipment requiring replacement in order to continue maintaining the network to the design criteria to which the fiber infrastructure was built, updated, operated and maintained by CenturyLink since 1999.

(3) Discussion regarding cause of the sole source situation. Competition is not practical due the fact that the equipment to be replaced is currently being maintained by CenturyLink and is located in CenturyLink-owned facilities. No other source has access to CenturyLink facilities or the engineering data on the fiber to complete the work. In 1999 the Government’s initial investment agreement to establish the Indefeasible Right of Use (IRU) was estimated at

. As of 11 June 2015 the total lifecycle value of contract

Continuing support with CenturyLink would be in the best interest of the Government due to the substantial investment in the existing IRU. Any competition would require transitioning to a network owned and operated by another company and abandoning the remaining fiber IRU.

CenturyLink is the only source able to provide maintenance and repairs at the CenturyLink-owned amplifier sites and fiber to the associated Government sites. CenturyLink has the unique access to the sites as a result of its ownership of the equipment and facilities.

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(4) Demonstration of unique source. CenturyLink, as the current multi-strand fiber cable and facility owner, has complete control and access to the single fiber strand leased by the Government. Since procurement of the IRU in 1999, the Government has provided equipment and due to technology advances, this equipment becomes obsolete from time to time and, therefore, requires a technology refresh in order to meet DOD communication mission needs.

The location of the equipment is within CenturyLink-owned facilities; thus, there is only one source able to perform this effort and provide essential services to the Government. Using other fiber providers would require access into CenturyLink’s facilities or would cause additional cost to the Government for a new fiber network. Additionally, transitioning to another contractor’s network would require up to a year to complete and would not meet the mission in the time required. CenturyLink has the experience, resources, technical expertise, and security qualifications required to complete the work at the lowest cost to the Government and in the timeframe required.

(5) Procurement discussion. CenturyLink built, installed, maintained and operated the fiber equipment on its fiber optic backbone and currently serves as the Optical layer maintenance provider of the DISN. CenturyLink is in the unique position to install the equipment required for enhancement and can continue to provide maintenance and repairs at the commercial facilities. No source, other than the existing contractor, is capable of providing the services required by the Government to continue to operate and maintain the network without impacting and/or impairing the ability to accomplish missions in support of national security objectives.

(6) Impact: This contracting action is necessary to ensure Government capital property (i.e., the IRU fiber infrastructure) and associated equipment are maintained and available to support the warfighter, the National Command Authority, Combatant Commanders, and the DoD enterprise. Failure to obtain these services will result in degraded communications for the Department of Defense. Procuring these services from another source would result in significant cost to the Government to acquire and install a new network path with another provider. The Government currently has an operational network under the current contract, which consists of a multi-million dollar capital investment.

6. FEDBIZOPPS ANNOUNCEMENT: A notice of intent to sole-source was posted to FedBizOpps on 12 December 2014. The contracting officer will post this J&A to FedBizOpps within 14 days of the effective date of the contact action in accordance with FAR 6.305(a).

7. DETERMINATION OF FAIR AND REASONABLE COST: The Government has fifteen years of history, approximately six of which are under the ongoing contract. There is sufficient cost data to determine a fair and reasonable price for the services required. A Government Cost Estimate has been developed by the Program Office and provided to the Contracting Office. The contracting officer will use this estimate, along with price comparisons currently available and analysis of cost information, to ensure the cost to the Government will be fair and reasonable.

8. MARKET RESEARCH: Market Research was conducted June through July 2014 for similar work at other sites in CenturyLink’s fiber network. The following response was provided by

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Page 5 of 6 Pages another fiber vendor which substantiates that CenturyLink is the only source capable of meeting the requirement.

Facilities based carriers do not grant uncontrolled access to wholly-owned network infrastructure and or support facilities to any competitors nor allow 3rd party providers to install CPE components into any element of our proprietary core network infrastructure.

This is standard protocol for any Telecommunications provider with a facilities-based environment.

Through its ownership of the multi-strand fiber and the buildings housing the Government equipment, CenturyLink is uniquely positioned to meet the stated operational mission needs without violating security access guidelines. Due to knowledge gained from previous market research, further market research will not be conducted for this action (equipment procurement and installations) since CenturyLink owns and controls access to the facilities where the DISN equipment are located in CONUS and have been performing Operation and Maintenance on these segments of the network since 1999.

9. ANY OTHER SUPPORTING FACTS: None.

10. LISTING OF INTERESTED SOURCES: None.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS THAT LED

TO THE EXCEPTION TO FULL AND OPEN COMPETITION.

(a) Procurement History.

(1) Contract Number: DCA100-99-C-4035 Contractor: Qwest Government Services Contract Period: Base period of one year commencing 01 Oct 1999 and ending 30 September 2000. Nine one-year option periods were included. Contract expired November 29, 2008.

Type of Acquisition: Sole Source

(2) Contract Number: HC1047-09-C-4000 Contractor: Qwest Government Services Contract Period: Base period of one year commencing 30 November 2008 and ending 29 November 2009. Nine one-year option periods are included. Six options have been exercised.

The current period of performance expires 29 November 2015.

Type of Acquisition: Sole Source

(b) The sole source nature of this action is driven by the fact that CenturyLink is the owner of the fiber and facilities where the existing equipment is located. No other contractor is able to gain access to the existing equipment in order to complete this requirement.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): Acquisition Plan, Memorandum of 24 October 2008 for the Major Automated Information System – Acquisition Category (MAIS-ACAT) 1AM Program specified execution of a 20-year property IRU capital procurement in conjunction with an “initial” 10-year Operation and Maintenance support agreement plus notification and included language of the Government’s right and intent to enter into follow-on contract(s) for continued O&M support and service for the 20-year term of the IRU.

HC1047-09-C-4000 Modification for phase 2 OTN Upgrade-JA15-022

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Benjamin K. Warren SIGNATURE: _

TITLE/ORGANIZATION: Contracting Officer Representative, IE132 PHONE: 3

DATE: 11 June 2015

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Mr. Jessie Showers

TITLE/ORGANIZATION: Infrastructure Executive, DISA PHONE:

DATE: 12 June 2015

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Jonathan D. Gray

TITLE/ORGANIZATION: Contracting Officer/PL61 PHONE:

DATE: ________

APPROVED BY:

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

NAME: Gay Arnold

TITLE/ORGANIZATION: Procuring Activity Competition Advocate PHONE: (

DATE: ________

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO MR.

JONATHAN D. GRAY,

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15 JUN 2015

June 16, 2015

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