SSA_J A.docx

TO: CONTRACT FILE

FROM: BJORN MILLER, CONTRACTING OFFICER

DATE: June 4, 2013

RE: SOLE SOURCE JUSTIFICATION AND APPROVAL

INTRODUCTION

The General Services Administration’s (GSA) Region 2 Network Service Division (NSD) is responsible for assisting federal agencies residing in the Region 2 footprint with any and all telecommunications service needs. NSD assists customer agencies in defining requirements, identifying solutions, ordering services and managing the ongoing provision of services, inclusive of billing operations.

NSD leverages the government’s buying power to obtain the full range of end-to-end telecommunications products and services including global voice, data, and video services, as well as IP services that support both local users and long-distance users.

Currently, NSD is transitioning federal agencies from the expiring contract vehicle, Local Service Contract (LSC), to the successor contract vehicle, Regional Local Telephony Contract (RLTC). The LSC contracts expire on August 2, 2013 for Verizon Federal, Inc. and August 5, 2013 for AT&T Global Services. For the New York City (NYC) Metro Area, Verizon Federal, Inc., Windstream and TCS of America Enterprises, LLC. were each awarded the RLTC contract. On February 27, 2012, NSD sent to the four (4) RLTC contractors a Fair Opportunity RFQ for the NYC Metro Area. Windstream was notified on April 6th, 2012 that it would receive the majority of orders against its RLTC contract for the NYC Metro Area. In addition to the NYC Metro Area orders, Windstream was notified on February 21, 2012 it would also receive the majority of New Jersey (NJ) orders. The majority of SSA’s offices would transition from Verizon Federal, Inc. to Windstream.

ISSUE

In early March 2013, SSA informed GSA that it is currently upgrading its network system throughout the NYC Metro Area. This project “requires the extensive input from the office manager and staff and is disruptive in its own right, further impacted by the transitioning of SSA’s telephony services from Verizon Federal, Inc. to Windstream.” On April 1, 2013, SSA submitted a request to remain with Verizon Federal, Inc. and not transition to Windstream.

FINDINGS

On October 21, 2010, NSD posted the RLTC solicitation, which was subsequently amended eight (8) times, via the Federal Business Opportunity website. Responses were due by February 15, 2011. The solicitation included twelve (12) sections—Sections B through M—describing the scope of work, explaining how proposals were to be submitted, evaluated and a contract awarded, identifying how orders would be awarded and issued and specifying any special conditions, among other terms and conditions.

Below is a list of all sections included in the solicitation:

1. Section B (Supplies or Services and Prices/Costs)

2. Section C (Statement of Work)

3. Section D (Packaging and Marking)

4. Section E (Inspection and Acceptance)

5. Section F (Deliveries or Performance)

6. Section G (Contract Administration Data)

7. Section H (Special Contract Requirements)

8. Section I (Contract Clauses)

9. Section J (List of Attachments)

10. Section K (Representations, Certifications and other Statements of Offerors)

11. Section L (Instructions, Conditions and Notices to Offerors)

12. Section M (Evaluation Factors for Award)

Specifically, the solicitation included the exact locations and their respective line count and the duration by which the contractor had to fully transition upon receipt of an order.

On February 27, 2012, three (3) RFQs were sent to Verizon Federal, Inc., Windstream and TCS of America Enterprises, LLC for the NYC Metro Area. The contractors were to submit pricing inclusive of all cost elements for each of the locations specified in the RFQs. To ensure contractors took into consideration all cost elements, NSD “urged the contractors to inspect the sites and had an expectation that they do so.” Based upon a determination that Windstream provided the lowest aggregate price, Windstream was informed on April 6, 2012 that it would be awarded orders for the NYC Metro Area. In addition to the NYC Metro Area orders, Windstream was notified on February 21, 2012 it would also receive the majority of New Jersey (NJ) orders.

SSA was advised that Windstream would conduct site visits at most SSA’s offices to perform a fit-gap analysis to assess whether or not their equipment could be installed without altering the space. In addition, SSA was advised that its personnel would be required to assist Windstream in validating all of its Customer Service Records (CSRs). SSA communicated to GSA that the process of conducting a site visit would be time consuming and disruptive to their existing network upgrade project and SSA did not have the personnel or resources to coordinate two projects of this magnitude.

SSA advised GSA that it anticipates Windstream having difficulties locating power sources and space to install its equipment as SSA reconfigures its office spaces while upgrading its network system. Furthermore, SSA foresees having episodic or reoccurring outages caused by this transition process as latent issues materialize, something that would greatly impact its mission and jeopardize its network upgrade project. Lastly, the initial costs to transition from Verizon Federal, Inc. to Windstream are not off-set by the lower rates awarded to Windstream. SSA projected a net loss of $24,000 within the first year after all SSA offices are transitioned. Even though three years remain on the RLTC contract vehicle, the probability of successfully transitioning all of SSA’s offices to Windstream within one year is very low. A more likely scenario would be for full transition in two years, but that cannot be guaranteed. Therefore, SSA would not realize any cost savings until all of its offices are transitioned to Windstream at least two years from now.

DETERMINATION

It is not in the best interest for SSA to transition from Verizon Federal, Inc. to Windstream due to the numerous logistical, programmatic and organizational issues it would face while upgrading its network system. SSA cannot make mission-critical decisions without knowing when the transition project will be completed, nor have it impact its ongoing network upgrade project. In addition, SSA would not realize any cost savings by transitioning from Verizon Federal, Inc. to Windstream until after the first year (assuming that full transition is completed within twelve (12) months). With budget cuts around the corner, SSA cannot afford to have the transition project impact its network upgrade project with no potential of short-term cost-savings, therefore, in accordance with FAR Subparagraph 16.505(b)(2)(i)(A) it is in the best interest of SSA to remain with Verizon Federal, Inc. The estimated value of the orders is $776,000.00.