Sole_Source_Equinix_final_Redacted.pdf

August 28, 2019

MEMORANDUM TO: Jessica Chu, Contracting Officer, ADM/AMD/OBA-IT

FROM: , Contracting Officer’s Representative

SUBJECT: SOLE SOURCE JUSTIFICATION FOR AN

EXCEPTION TO FAIR OPPORTUNITY

REFERENCE: Purchase of Equinix Inc.

1. Nature and/or description of the action being approved.

a. Acquisition objectives.

The objective of this acquisition is to procure data center space and connectivity services on a sole source basis from Equinix, Inc.

b. Project Background

The NRC requires a vendor facility to provide a security cage space with “zero-hop” connectivity to any Cloud Service Provider (CSP) and to any Internet Service Provider (ISP). The “zero-hop” connectivity will provide secure connection in support of applications and data that migrate to CSPs and O365 services.

c. Name and address of the proposed contractor(s).

Equinix, Inc., 21691 Filigree Court, Ashburn, VA 20147

2. Description of the supplies or services required to meet the agency’s needs

(including the estimated value).

a. Project Title

Purchase of Equinix Cloud Connectivity Services

b. Project Requirements

The Contractor shall provide the following materials and services. Please see the statement of work for additional information.

Pr od uc t C od e

Pr od uc t D es cr ip tio n Q ty Uo

M N on -R ec ur rin g

Co st

M on th ly R ec ur rin g

Co st

No n-

Re cu rr in g Co st M on th ly R ec ur rin g

Co st

No n-

Re cu rr in g M on th ly

SP

C0

Pr iv at e Ca ge W ith k

VA

B as ed

P ow er

Ea ch

CA

G0

Ca ge

- 5

C ab in et s -kV

A kV

A

CA

G0

Ca ge

In st al la tio n Fe e-

Ea ch

PO

W

AC

P ow er kV A

PO

W

AC

C irc ui t-

8v

-a m p

- T hr ee

Ph as e

- P rim ar y

Ea ch

PO

W

AC

C irc ui t -

In st al la tio n

Fe e-v

-a m p

- T hr ee P ha se

Pr im ar y

Ea ch

PO

W

AC

C irc ui t-

8v

-a m p

- T hr ee

Ph as e

- R ed un da nt

Ea ch

PO

W

AC

C irc ui t -

In st al la tio n

Fe e-v

-a m p

- T hr ee P ha se

Re du nd an t

Ea ch

CC

De m ar ca tio n

Po in t-

EC

X0

Un lim ite d Co nn ec tio ns

P ac ka ge

Cl ou d

Ex ch an ge

P or t-

EC

X0

Cl ou d Ex ch an ge

Po rt

In st al la tio n

Fe e-

0G

Ea ch

EC

X0 d

Ex ch an ge

P or t-

G

Ea ch

CC

Ne tw or k Ca bl e

Co nn ec tio n-

Ea ch

EC

X0

Un lim ite d

Co nn ec tio ns P ac ka ge

Cl ou d Ex ch an ge P or t-

EC

X0 d

Ex ch an ge

Po rt In st al la tio n Fe e-

0G

Ea ch

EC

X0 d

Ex ch an ge

P or t-

G

Ea ch

CC

Ne tw or k Ca bl e

Co nn ec tio n-

Ea ch

PS

Sm ar t H an ds

S up po rt

P la n-

PS

Sm ar t H an ds

S up po rt

P la n-

Ho ur

Su bt ot al

Po w er a nd C on ne ct io ns Ex te nd ed P ric e

(F irs t Y ea

r) Un it To ta l C ha rg es

c. Acquisition Information.

Requirement type.

☒ Information Technology (IT) or Electronic and Information Technology (EIT)

Type of action.

☒ New requirement

Proposed contract/order type.

☒ Firm-fixed-price

Statement of Work Type: N/A

Requisition number: OCIO-19-0292

Total estimated dollar value and performance/delivery period.

Estimated dollar value is The period of performance for is October 1, 2019 – September 30, 2021.

3. Identification of the justification rationale.

☒This acquisition is conducted under Federal Acquisition Regulation (FAR)

8.405-6.

□ Urgent and compelling need exists ☒ Only one source is capable of providing the supplies or services (i.e., peculiar item, brand name item)

□ Logical follow-on

4. Identification of the exception to fair opportunity (see 16.505(b)(2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited. If the contracting officer uses the logical follow-on exception, the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g., in terms of scope, period of performance, or value).

The NRC requires a zero-hop Inter-Connection Point (ICP) that will assist OCIO to leverage and capitalize on the technology gains from Cloud connectivity and the service industry of the past five years to (1) ensure a high availability (HA) of the current ICP and Disaster Recovery solution to support essential business systems, (2) reduce costs and service latencies, and (3) provide for future growth and flexibility of a Cloud Access Point (CAP).

The NRC requires zero-hop connectivity to CSPs and ICPs and the NRC network to provide NRC HQ and field sites wide area network (WAN) connectivity and access to multiple cloud environments and O365. Due to the limitations of the current network connection to CSPs, NRC requires hosting of Government equipment at a site (i.e. Network Edge) that has the ability to directly connect with “zero-hop” connections to any CSP and ISP in order to achieve the network performance of less than 10 ms delay to any CSP and ISP, minimize the risk of outage, scalability, and lowers the cost of connectivity as zero hop eliminates the

WAN connections to CSP. A Zero-hop connection allows for improved connectivity and provides a reduction of complexity. It also is a requirement for Monolith databases to successfully implement a transition of computing to the cloud and still have the latency to support a true hybrid cloud environment.

During market research on the required infrastructure to set up an ICP within a secure facility that has zero-hop connections to all ISPs and CSPs, it was determined that Equinix, Inc. is the only Contractor in the Northern Virginia area that can provide the required zero-hop connectivity. There are a few other businesses that provide similar services, but they route through Equinix themselves which in turn creates a “hop”, or delay, to the ISPs and CSPs. Using one of these businesses would add cost and performance latency.

Performance latency will result in delayed response to the NRC internal and external users and reduction in productivity.

Additionally, NRC reached out to Equinix to determine if they have resellers to compete the brand name work. Equinix does not have authorized resellers on GSA. Thus, this work is sole sourced to Equinix via its GSA schedule.

5. A determination by the contracting officer that the anticipated cost to the

Government will be fair and reasonable.

This order will be placed in accordance with FAR 8.404, “Use of Federal Supply Schedules.”

The General Services Administration (GSA) has already negotiated fair and reasonable pricing rates. Discounts to these GSA schedule rates will be requested. Additionally, prior to issuance of the task order, the ordering activity will consider the Bill of Materials proposed to perform the specific task being ordered to determine that the total price is reasonable. The contractor’s quote will also be compared to the Independent Government Cost Estimate (IGCE). Equinix, Inc. is on GSA contract under the FSS Schedule 70 SIN 132 52.

6. Any other facts supporting the justification. None

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

The Acquisition Management Division will closely scrutinize any subsequent requests to procure Equinix services and will ensure that competitive barriers, if any, are mitigated or removed to the maximum extent practicable.

8. By signing below, the technical requirements official noted above certifies that the justification is accurate and complete to the best of his/her knowledge and belief.

Contracting Officer Representative Certification

, COR Date

9. This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief the information and/or data provided to support the rationale and recommendation for approval is accurate and complete.

Contracting Officer

Jessica Chu Date

ADM/AMD/OBA

Jessica Chu Digitally signed by Jessica Chu Date: 2019.08.28 11:18:22 -04'00'