Dark Fibers SSJ_Redacted.pdf

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SOLE SOURCE JUSTIFICATION

(FOR SAP PROCUREMENTS)

Contracting Organization: Pension Benefit Guaranty Corporation (PBGC) / Procurement Department (PD)

Requisition Number: RQ-51-21-000063

Procurement Action Type: Follow-on Contract

Contract Number:

Contractor Name or Brand Name Product: Applied Data Systems (ADS) Dark Fiber service

Supplies or services to be procured:

Dark Fiber (optical) service, 1200 K Street to 1275 K and 1225 EYE

Supplies: Quantity and estimated value of each item to be procured: OR Services: Period of performance and estimated value of each service to be procured:

Period of performance April 1, 2021 - March 31, 2022 and a six-month option period

Total Estimated Value: $142,800.00

a. Identify the specific reasons of why only supplies or services provided by this contractor can satisfy the Government's requirement.

The incumbent vendor, Applied Data Systems, Inc. (ADS), a SBA certified SDB company, owns the existing fiber infrastructure servicing 1200 K, 1275 K and 1225 I streets. PBGC leases this fiber from ADS. As PBGC does not own the fiber, switching providers while keeping the fiber infrastructure intact is not a plausible option. That being said, if PBGC were to use a different vendor, it would result in a very lengthy construction process causing both an unnecessary delay and a substantial duplication of costs, as further described in subsections (d) and (e) below. In summary, with ADS there is no need for lateral construction and intra building cable connections, where site visits would be required to the three buildings, and there will be no interruption in service beyond the current contract's end date of March 31, 2021. The contract being procured is a logical follow-on to PBGC's previous contracts with ADS since 2004 and thus, procuring this Sole Source is also in the interest of economy and business efficiencies.

1. AGENCY AND CONTRACTING ACTIVITY

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

3. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEED

4. AUTHORITY PERMITTING SOLE SOURCE PROCUREMENT

5. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE

ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED

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b. If a brand name is required, clearly explain why the specific brand name product or service is required rather than a full and open procurement.

This subsection is not applicable to this procurement.

c. Describe this contractor’s unique/highly specialized capabilities and/or qualifications (e.g., facilities, personnel, special equipment or tooling, etc.).

ADS owns the fiber infrastructure for the three buildings to which this service is being provided.

d. When rationale includes substantial duplication of cost, identify those costs and specify the costs that could not be recovered through competition.

The agency would realize considerably increased and duplicated costs by awarding these services to another vendor at this time. ADS is the owner of the fiber infrastructure for the three buildings so another provider using the current fiber infrastructure to provide these services is not plausible. As PBGC only leases the fiber infrastructure, awarding to a new vendor would require considerable construction costs. These duplicated costs are not an efficient use of PBGC's resources, especially when these services can be procured using the current fibers without the additional cost of construction. PBGC could anticipate spending tens of thousands of dollars on construction costs for the installation of the new fibers. Not only is this unnecessary in general, but these buildings will be vacated in 2022 and there will no longer be a need for this contract nor would PBGC continue to use the fibers. Essentially, PBGC would incur considerable construction costs for the new fiber infrastructure, only to use the fiber for a relatively short period of time. All of these factors point to an unnecessary considerable increase in costs that cannot be justified. None of these costs could be recovered through competition.

e. When rationale includes unacceptable delay, identify how long it would take another contractor to obtain the capability (i.e., months, years, etc.) and why, and provide a detailed explanation of the impact or problem that would be caused by the delay.

In addition to the reasons set forth above, the impact of a timely construction process would be detrimental to PBGC as these services are critical functions supporting PBGC's mission. However, this issue is further exacerbated by COVID-19. The unpredictable nature, and resulting restrictions, caused by the ongoing COVID-19 pandemic is likely to present complications during a construction project. Not only could the COVID-19 pandemic impact the construction process as a whole, there would also be a need for an in-person site visit for potential offerors to all three buildings at the solicitation stage. A Sole Source procurement will also reduce the risk of having these resellers visiting the PBGC facilities during COVID-19 to inspect and develop construction bids. This pandemic presents a very unstable environment, which could potentially put this procurement at risk..

Not applicable to Sole Source procurements at or below the SAT.

Determination: A determination that the cost/price is fair and reasonable will be made by the Contracting Officer before the contract action is issued.

In accordance with FAR 13.106-1(b)(1)(i), it is the Contracting Officer's determination that the circumstances of the contract action deem only one source to be reasonably available. As certified cost and pricing data is not required for this acquisition, the Contracting Officer anticipates establishing fair and reasonable pricing through the procedures at FAR 15.402(a)(2)(ii).

Not applicable to Sole Source procurements at or below the SAT. However, it is important to note that to ensure that a Sole Source procurement was appropriate, ITIOD staff researched dark fiber providers on the Enterprise Infrastructure Services (EIS) contract; however, this service was not available. The incumbent vendor, ADS, owns or controls the fiber inside the three PBGC buildings, which are part of previous contracts. Selecting another reseller of dark fiber service would require construction to pull new fiber and relacement of existing ADS equipment at cost to PBGC. Typically these kinds of costs are spread over multiple years of a contract; however, the service is only needed until the three downtown locations are vacated in 2022.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT QUOTATIONS/OFFERS ARE SOLICITED FROM

AS MANY POTENTIAL SOURCES AS PRACTICABLE

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR A STATEMENT

OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED

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Not applicable to Sole Source procurements at or below the SAT.

Not applicable to Sole Source procurements at or below the SAT.

Not applicable to Sole Source procurements at or below the SAT.

I hereby certify that this Sole Source Justification, and all supporting data, are accurate and complete to the best of my knowledge and belief.

Chip Gallo Program Office/COR

02/11/2021 Signature Date

I hereby certify that this Sole Source Justification, and all supporting data, are accurate and complete to the best of my knowledge and belief.

Sierra Villanueva Contracting Officer

02/11/2021 Signature Date

I approve this Sole Source Justification

Justification exceeds $700K but does not exceed $7M

Enter Name Competition Advocate

Date Signature Date

9. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE

10. LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE ACQUISITION

11. A STATEMENT OF THE ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY

BARRIERS TO COMPETITION BEFORE MAKING ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES OR SERVICES REQUIRED

12. TECHNICAL OR REQUIREMENTS PERSONNEL’S CERTIFICATION

13. CONTRACTING OFFICER’S REVIEW OR APPROVAL

14. COMPETITION ADVOCATE’S REVIEW OR APPROVAL