A02 FINAL_Justification and Approval_Other than FO_SIGNED.pdf

Control Number: UDALL-24-10

Justification and Approval for Other Than Full and Open Competition

Program/Equipment: Data and Information Technology program for telecommunication services.

Authority: FAR Subpart 13.106-1(b)(1)(i) Only one source reasonably available for supplies or services not exceeding the simplified acquisition threshold.

Amount: Base Period (3 years): $24,264.00 POP: 11/14/2024 – 11/13/2027

Total: $24,264.00

Prepared by:

Typed Name: Jerry Carter Phone: (520) 901-8520

Title: Chief Data & Information Officer Date: 8/21/2024

E-mail: carter@udall.gov

Contracting Officer:

Typed Name: Terri L. Harrison Phone: (520) 901-8565

Date Reviewed: 09/05/2024

E-Mail: harrison@udall.gov

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Legal Counsel and Special Competition Advocate

Typed Name: Gwendolyn Franks Phone: (520) 901-8552

Signature: ______________________ Date: __________

Justification and Approval for Other Than Full and Open Competition

1. Contracting Activity: Morris K. Udall and Stewart L. Udall Foundation, 434 E University Blvd., Ste. 300, Tucson, AZ 85705

2. Description of Action: The current services were awarded to First Digital Communications through a sole-source process and have been in place since May 10, 2021. The current contract was for a base period with a final performance end date of May 9, 2024. During the course of performance of the contract, there was a stop-work in place, at no fault of the government or contractor. At the end of the stop work, the government extended the contract by the same number of days for a new performance end date of 13 November 2024. The Udall Foundation requires these services to continue in order to maintain current email functionality, internet connectivity, file system access and internal application use at the headquarters location.

This contract action includes the Tucson Headquarters office. This contract will be for a 36-month period. This contract period of performance is standard within the telecommunications industry for these types of connection services and a D&F for multi-year contracting will be signed prior to issuance of a contract. There will be one base period, a total of thirty-six (36) months, to ensure connectivity of telecommunications for the Udall Foundation. The contract type is Firm-Fixed Price with a base period of performance from 14 November 2024 through 13 November 2027. The contract will be awarded to the current service provider, FirstDigital Telecom, LLC. (DUNS: 131591732, Cage: 45AT4), a SBA certified Small Business. The estimated cost for this contract is $24,264.00, total, according to the Independent Government Cost Estimate (IGCE), which was independently derived from historical costs and other industry available pricing. Funding from the Udall Foundations general administrative budget will be used, and the funds have no expiration for obligation.

3. Description of Supplies/Services: The contractor shall provide non-personal telecommunications services to support day to day internet connection activities for the Udall Foundation Headquarters offices. Activities include but are not limited to inbound and outbound email traffic, remote file access, and desktop database application usage. The system is unique in that it connects to a dedicated fiber-optic line and the connection allows for scalability. This allows for an increase in demand without any additional installations or downtime. These services are not in a shared network with neighboring companies or buildings and there are no limits on the speeds provided for uploads and downloads. The services are cost-effective, as they provide a service that networks all locations on a private, dedicated network that is monitored 24/7/365. The internet and data services carry a 99.999% guaranteed uptime with a maximum 2 hour Mean-Time-to-Repair of T1 facilities. Additionally, the system is physically redundant through multi-network connections throughout the network and the Network Operations Center (NOC). The incumbent contractor offers multi-fiber pathways that terminate at the local switch. In addition, the contractor maintains a “N+1” redundancy policy, providing a backup of every piece of equipment deployed with a duplicate piece of hardware. This eliminates downtime due to hardware failure, which is critical to maintain daily operational status of the

Udall Foundation mission. Faster speeds, higher bandwidth, lower latency, reliability, and scalability are essential to ensure smooth, uninterrupted operations, especially for data-intensive tasks and real-time communications. These features prevent costly downtime, enhance productivity, and support the agency’s growing digital needs, making them crucial for maintaining efficient and secure operations.

4. Authority Cited: FAR Subpart 13.106-1(b)(1)(i) Only one source reasonably available for supplies or services not exceeding the simplified acquisition threshold.

5. Reason for Authority Cited: The Udall Foundation requires a constant connection for maintaining mission functions. Activities include but are not limited to inbound and outbound email traffic, remote file access, and desktop database application usage. This service is critical for the Udall Foundation. Internet connectivity allows personnel to access and utilize email and online collaboration tools that are used daily to conduct business. Due to the COVID-19 pandemic, the Udall Foundation relocated its servers to an offsite data center, allowing Remote Duty Station (RDS) and Temporary Duty (TDY) staff access to files and applications possible, regardless of the connection status at the Headquarters location. However, the ongoing development of the IT Continuity of Operations Plan (COOP) lists the headquarters as an alternative to the data center, a plan contingent upon reliable fiber connectivity at HQ. The IT COOP will outline the procedures in the event of an outage at the offsite facility, rendering the servers unavailable. In such a case, the servers would be relocated to HQ. A fiber connection is essential to facilitate this transition. Relying on a copper connection would introduce significant bandwidth and latency issues, severely impacting performance. In this instance, fiber optic internet would be essential for staff to conduct business while traveling, teleworking, or working from permanent remote duty stations across the nation. Performance of this contract occurs in Tucson, Arizona. Additionally, based upon the remote nature of personnel, the connections are mission critical. The fiber connection in this context, provides remote staff with a connection to the Agency’s Program Management Database (PMD) and files located on the Foundation’s internal network, such as the O drive. The system required is unique in that it connects to a dedicated fiber-optic line and the connection allows for faster speeds, higher bandwidth, lower latency, more reliable, and scalability. These features of fiber optic technology—faster speeds, higher bandwidth, lower latency, reliability, and scalability—are critical to the Udall Foundation for several reasons:

1) Faster Speeds – Fast internet is crucial for productivity. It allows multiple users to upload, download, and transfer large files quickly, which is important for everything from data sharing to cloud-based services, ensuring workflows aren’t bottlenecked by slow connections.

2) Higher Bandwidth – With increasing digital demands, especially work that involves large datasets (i.e. PMD, SCATS), video conferencing, and real-time collaboration, higher bandwidth ensures that multiple users and applications can operate simultaneously without degrading performance. It helps maintain the efficiency of daily operations.

3) Lower Latency – For critical operations, such as real-time data monitoring, video conferencing, and teleworking, low latency ensures smooth, uninterrupted communication and data flow. It minimizes delays and enhances the responsiveness of applications, which is vital for decision-making and rapid communication.

4) Reliability – Fiber is more reliable than copper-based connections like cable or DSL.

For essential services, including cybersecurity monitoring, emergency response coordination, or remote work environments, consistent and reliable connectivity minimizes the risk of operational downtime, which can be costly or disruptive.

5) Scalability – As the agency grows, fiber optic connections can easily scale to meet future demands without requiring significant infrastructure changes. This is important for long-term planning, allowing the organization to expand its digital capabilities without facing connectivity constraints.

In essence, these features are not just about improving performance—they are about ensuring the agency’s critical functions can operate smoothly, securely, and without interruption as digital demands increase. They help future-proof operations and reduce the risks of service disruptions or bottlenecks. The services are more cost-effective than public or shared networks because a private, dedicated network provides enhanced security, reliability, and performance without the higher overhead costs associated with shared infrastructure. Public networks often charge more for similar levels of security and performance and may require additional third-party monitoring services to match the 24/7/365 monitoring included in this private solution, further driving up costs. The internet and data services carry a 99.999% guaranteed uptime with a maximum 2 hour Mean-Time-to-Repair of T1 facilities. The internet and data services guarantee 99.999% uptime, allows the agency to expect no more than approximately 5 minutes of downtime per year. The maximum 2-hour Mean-Time-to-Repair (MTTR) for T1 facilities ensures that, in the rare event of an outage, service will be restored quickly, minimizing disruptions to agency operations. This high level of reliability reduces the need for additional IT staff to handle downtime-related issues and avoids costly delays in service restoration. As a result, the agency can optimize its resources, spending less on emergency support and minimizing productivity losses. Additionally, the system is physically redundant through multi-network connections throughout the network and the Network Operations Center (NOC). The incumbent contractor offers multi-fiber pathways that terminate at the local switch, which provides enhanced network reliability and redundancy by ensuring continuous service even if one path fails. This setup minimizes downtime, improves performance, and supports the agency's critical operations. In addition, the contractor maintains a “N+1” redundancy policy, providing a backup of every piece of equipment deployed with a duplicate piece of hardware. This eliminates downtime due to hardware failure, which is critical to maintain daily operational status of the Udall Foundation mission.

The Government has analyzed and evaluated the use of potential alternatives such as a) allow expiration of current contract, and b) awarding through a competitive process to perform this effort. This analysis concluded that none are practicable in the short term. During the course of the current contract, the Government relocated its HQ to a new location, requiring the incumbent contractor to extend its fiber network for continued service. Delays in obtaining permits from the City of Tucson to dig under the adjacent light rail system resulted in an 8-month delay in completing the fiber installation. During that period, a traditional copper cable service was acquired from a local provider to supply internet access. Initially, bandwidth issues arose, requiring an upgrade to the maximum available bandwidth to support agency operations. While there were a few outages after the upgrade, the service provided a short-term solution for internet access. Given the current requirement, there is neither sufficient time for another 8-month installation process nor funding available for other fiber optic providers to run new cable to the building. Additionally, with the IT COOP requirements and increased bandwidth requirements since the initial move into the new HQ space, extended reliance on a copper connection for daily HQ and potential COOP requirements would not meet the agency’s needs. Award of this contract must be in place prior to November 13, 2024, to avoid any interruption in service.

Award to another source at this point would cost the government time and significant duplication of cost for installation of fiber cable to the building, that would not be recouped through competition; and unacceptable delays in fulfilling the requirement. A new contractor would require additional time and materials to be able to satisfy the requirements, which are not currently available. Furthermore, additional time would be needed to assess the current telecommunications environment within the building. A new contractor would require additional time and materials to meet the requirements, as there is no other fiber optic cable currently run to/installed in the building. To start, additional time would be needed to assess the telecommunications environment within the building. In addition, competition for this contract could result in multiple contractors handling different phases of service within the transition period. If there were a transition period, multiple contractors would be required—one providing temporary internet access, which would not meet the technical needs of the agency, as described above, and another responsible for installing the fiber circuit at headquarters. As with the previous transition, there would be a period where infrastructure is moved from the temporary internet service provider to the new one. In addition to potential service disruptions, procedures for invoicing, handling service interruptions, and managing configuration changes would need to be learned or adjusted. Additionally, any agencies where our current IP addresses are whitelisted, such as eOPF, would need to update their records to reflect our new IP addresses or there would be a period where employees would not be able to access those websites on the HQ network until the fiber installation and transition is complete. This would also duplicate costs for mobilization and setup. Previously, the Government incurred additional fees for the current contractor to extend their fiber network to the current headquarters building. It is assumed that a new contractor would also charge similar fees for extending their network, as none of the providers researched currently have existing fiber infrastructure in our area. Past experiences suggests that it is unlikely any new contractor could successfully mobilize, design, install, test, and activate services within the required timeframe to meet the agency’s needs. A search of SAM.gov revealed that the incumbent contractor does not have any contracts exceeding the threshold required for CPARS reporting, so there was not any negative performance reports found in the system. The SAM.gov data also indicates that there are no sources of defective pricing, non-responsibility determinations, payment issues, or terminations (either for cause or for default).

Based upon the findings SAM.gov, the incumbent contractor has shown performance capability.

Additionally, given the performance record on the current contract, it is determined that the incumbent contractor can successfully meet the requirements on day 1 of the contract.

6. Efforts to Obtain Competition: All future requirements for these services will be fully researched to determine if a competitive small business set-aside is possible. Currently, market research, through SAM.gov and the Small Business Administration (SBA)’s dynamic business search tool, show that this is the only small businesses available in the performance area that are capable of successful performance of the services. Continued market research will ensure that future small businesses within the performance area capable of performing the services are available for future requirements.

7. Actions to Increase Competition: All future contracts will be fully analyzed and researched to ensure that a competitive action, either for a small business set-aside or full and open competition, is considered and utilized if available.

8. Market Research: Market research was conducted to identify potential vendors capable of providing internet services over fiber to our current headquarters (HQ) location. The research focused on identifying providers that could meet the critical requirement of delivering high-speed internet via fiber-optic infrastructure, which is essential for supporting our agency's operational needs.

Through this research, it was determined that our current contractor is the only vendor capable of providing fiber-optic internet service to our HQ location. No other vendors were identified that could offer a similar service without extending the current required timeline and without requiring the other vendor to run new fiber optic cable into the building. Based on recent experience, historically the costs a vendor would incur running this cable to the building is charged to the Government, incurring significant additional costs. Further, in the Government’s experience, vendors require their own fiber and will not use the existing fiber optic cable infrastructure if it is not owned by them. The feasibility of engaging a different vendor was further assessed by evaluating the potential for new fiber installation at our location. It was found that running a new fiber connection would require an estimated 4-6 months to complete and would result in additional costs to the government of approximately $17,000.00.

Given these findings, it is clear that the time and financial resources required to establish a new fiber connection with an alternative vendor would not be in the best interest of the government.

Therefore, awarding the contract to our current contractor is the most efficient and cost-effective option, ensuring continuity of service without unnecessary delays or expenditures.

9. Interested Sources: There are no known interested sources for this requirement. The government will conduct extensive market research for any future requirements, as the technology for fiber optic cable is always expanding.

10. Other Facts: Nothing additional.

11. Technical Certification and Requirements Certification:

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

Typed Name: Jerry Carter Date:

Title: Chief Data & Information Officer Signature: ______________________

12. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. A price analysis will be completed in accordance with FAR Subpart 15.404- 1(a)(2) and 15.404-1(b), to include comparison with historical prices paid for these services and the Independent Government Cost Estimate (IGCE). Certified cost and pricing data will not be obtained based upon meeting the exception at FAR Subpart 15.403-1(a), which states that certified cost and pricing data shall not be obtained for acquisitions at or below the simplified acquisition threshold. The total dollar value for this action is $24,264.00, inclusive of the base and all option years, and is below the simplified acquisition threshold.

Typed Name: Terri L. Harrison Date:

Title: Contracting Officer Signature: ______________________

13. Contracting Officer Certification:

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

Typed Name: Terri L. Harrison Date:

Title: Contracting Officer Signature: ______________________

Approval

Based on the foregoing justification, I hereby approve the procurement of non-personal commercially available telecommunications services on an Other than Full and Open competition basis pursuant to the authority of FAR Subpart 13.106-1(b)(1)(i) Only one source reasonably available for supplies or services not exceeding the simplified acquisition threshold will satisfy agency requirements. subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Date: __________ Signature: __________________________

3. Description of Supplies/Services: The contractor shall provide non-personal telecommunications services to support day to day internet connection activities for the Udall Foundation Headquarters offices. Activities include but are not limited to i...