HC1013-19-D-0002-P00004 JA FINAL_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting

Procurements under FAR Part 12 and FAR Part 15

Purchase Request Number: Not Applicable (N/A)

Contract Number: HC1013-19-D-0002

Task/Delivery Order Number: N/A

Procurement Title: Department of Defense (DOD) Information Network (DODIN) Continental

United States (CONUS) Fiber Operation and Maintenance (O&M)

Estimated Value: $126,895,698 + $70,250,013 (Modification (MOD) 01) = $197,145,711

Statutory Authority: 10 U.S.C.2304(c)(1) and FAR 6.302-1

Justification for OTFAOC Number: JA18-083 MOD 01

Upon the basis of the following justification, I, as the Head of Contracting Activity (HCA), hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of FAR 6.302-1 and 10 United States Code (U.S.C.) 2304(c)1.

Note: Revisions to the original J&A are prefaced by “MOD 01” and identified in bold text throughout the document.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency:

Defense Information Systems Agency (DISA)

Infrastructure Executive (IE) 161, Capacity Management Branch

Fort Meade, Maryland 20755-0549

b. Contracting Office:

DISA/Defense Information Technology Contracting Organization/PL8231

2300 East Drive, Building 3600

Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

Original Justification: This Justification and Approval is to obtain approval for issuance of a five-year contract as a follow-on to existing contract HC1047-09-C-4000 between DISA and

CenturyLink Incorporated (CenturyLink). This procurement is to provide O&M, sustainment, and technology refreshes and enhancements of contractor owned fiber infrastructure and facilities controlled by the Government under a 20-year Indefeasible Right of Use (IRU) capital lease. This follow-on contract will provide the remaining five years of O&M under the 20-year

IRU term. The network links that require the O&M are on CenturyLink fiber and route through

CenturyLink facilities. CenturyLink, as the fiber and facility owner, has sole control and access to the fiber and equipment.

DODIN CONUS Fiber O&M-JA18-083 MOD 01

Page 2 of 8 Pages

In 2003, the Government entered into a 20-year IRU with CenturyLink which provided exclusive use of the fiber assets leased under DCA100-99-C-4035. Upon contract expiration of DCA100-

99-C-4035 in 2008, contract HC1047-09-C-4000 was awarded to provide subsequent 10 years

(one-year base with nine one-year options) of O&M and sustainment for the 20-year IRU.

This follow-on will be an Indefinite Delivery Indefinite Quantity (IDIQ) Firm-Fixed-Price (FFP) contract. Individual task orders will be issued for the O&M of existing infrastructure and also for technology refreshes, fiber relocations, and technology enhancements as required. The IDIQ contract will consist of a 5-year base period commencing on 30 November 2018 and ending on

29 November 2023. Option periods will not be included as the IRU agreement expires 29

November 2023; however, a 6-month extension in accordance with FAR 52.217-8 will be included in the contract. Task orders awarded against the IDIQ contract may be inclusive of option periods.

As stated above, this contract includes tasks that will be awarded at the task order level, including technology refresh, fiber relocation, and technology enhancement or upgrade. The estimated total value of the contract to account for O&M of the existing IRU, along with planned relocations and or enhancements, is $126,895,698.

MOD 01: This modification is to increase the current contract ceiling of the established

IDIQ contract HC1013-19-D-0002 by $70,250,013, from $126,895,698 to $197,145,711. It is anticipated the current contract ceiling amount of $126,895,698 will be exceeded in

September 2020. Increasing the contract ceiling is expected to satisfy the DODIN-IE1 program requirements supporting network enhancements, fiber relocations of existing infrastructure, and technology refreshes for the duration of the contract. Additionally, the contract has three remaining option years that provide continued O&M to the existing network. The contract is currently in Option Year 1 which expires November 29, 2020.

The remaining three option years run through November 29, 2023. DISA intends to fulfill future non-maintenance requirements through firm-fixed price task orders utilizing

Procurement funding. The O&M requirements exercised in the remaining option years will be funded using O&M funding. All requirements are within scope of the technical requirements as specified in the Performance Work Statement.

3. DESCRIPTION OF SUPPLIES/SERVICES:

DISA has a requirement for continued O&M and sustainment of its existing dedicated dark fiber and facilities assets, on a defined route, that provides end-to-end diversity, survivability and integration with other Government assets to provide information assurance for the DoD and its mission partners within the CONUS. This follow-on to contract HC1047-09-C-4000 will include continued O&M and sustainment for the 20-year IRU of CenturyLink’s fiber and network facilities. CenturyLink will also be responsible for maintaining the existing network management (NM) T-1 leased circuits. CenturyLink, the incumbent contractor, is able to supply all personnel, transportation, test equipment, engineering, testing and installations required to continue network services during the period of performance for the follow-on contract.

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A technology refresh is expected to take place in the base period and will replace existing

Corestream optical transport equipment with Packet Optical Transport Network (P-OTN) equipment. This new equipment incorporates new technology that increases the maximum bandwidth capability of the optical transport equipment from 10G to 100G. The technology refresh is estimated at a cost of . Additional technology refreshes may occur within the life cycle of the contract.

Based on DISA’s experience with this IRU and other fiber contracts, it is estimated that fiber relocation tasks will be required each year during the period of performance. A fiber relocation requirement occurs as a result of relocation of Government facilities, building or road/railway construction or expansion, or other activities that would necessitate a relocation of the existing fiber. Decisions to move existing fiber are made outside the Agency’s control and the scope and schedule of the fiber relocations are unknown at this time. A relocation task may only involve pulling new fiber through existing fiber ducts, but other fiber relocation tasks may require extensive trenching, permits and approvals, and environmental impacts and restoration requirements. The estimated cost for fiber relocation in the base period is with a total

5-year life cycle cost of .

An enhancement or upgrade is similar to a technology refresh except at a smaller scale. A technology enhancement or upgrade provides additional features and capabilities, but is typically implemented with a software upgrade or card replacement and not a full replacement of the optical transport equipment. Since the specific requirements and scope of the technology refresh, fiber relocation, and enhancements/upgrades tasks that are anticipated to occur throughout the contract are unknown at this time, the Government intends to award this contract as an IDIQ and issue TOs for individual requirements. The estimated cost for technology enhancements in the base year is with a total life cycle cost of .

The requirements for the technology refresh, fiber relocation, and enhancements/upgrade tasks will be defined in the task order and will be FFP awards. The total estimated life cycle cost, including technology refresh and relocation options, is $126,895,698.

The services described above are applicable for a 5-year base period commencing 30 November

2018 and ending 29 November 2023. FY19-FY24 Defense Information Systems Network

(DISN) Defense Working Capital Funds will provide the funding necessary for sustainment of the fiber infrastructure and services that will be obtained from the contractor over the contract period of performance.

Fiscal Year

(FY)

FY19 FY20 FY21 FY22 FY23 FAR 52.217-8

FY24

Total

Program

Management

Operations and

Maintenance

Equipment

Fiber

NM Leased

Circuits

Fiber Relocation

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Enhancements and Upgrades

Technology Refresh

Total $126,895,698

MOD 01: The estimated life cycle value is $197,145,711, an increase of $70,250,013 as a result of this modification. The ordering period is unchanged as a 5-year IDIQ contract, November 30, 2018 through November 29, 2023.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C.2304(c)(1).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events.

Contract DCA100-99-C-4035 was awarded to CenturyLink on 20 May 1999 which procured all the fiber assets to create the DISN. In 2003, the Government entered into a 20-year IRU with

CenturyLink which provided exclusive use of the fiber assets leased under DCA100-99-C-4035.

At that time, the Government fully paid the initial capital investment of the IRU. Upon expiration of DCA100-99-C-4035 in 2008, contract HC1047-09-C-4000 was awarded to provide a subsequent 10 years (one-year base with nine one-year options) of continuing O&M and sustainment for the fiber network.

(b) Justification.

(1) The contractor is to provide continued O&M support and professional services, to include technical refreshes, fiber relocations and technical enhancements and upgrades, to the United States Government CONUS dark fiber communications. This follow-on contract is critical to ensuring these services are continued for the next five years.

(2) Proposed sole source contractor. The incumbent, CenturyLink, implemented the diverse fiber and facilities assets for the DISN in CONUS for the Global Information

Grid Bandwidth Expansion program. The original procurement, which included an initial investment of , required diverse fiber routes and construction of access laterals to integrate multiple DISN service delivery node equipment and locations. Additionally, builds and modifications were necessary to integrate other

Government-acquired fiber assets into one seamless, survivable, and diverse

Government controlled network. The resulting buried fiber routes required alterations after contract award in order to achieve end-to-end diversity and security compliance.

Only CenturyLink will be able to continue maintaining the network in accordance with the design criteria to which the fiber infrastructure was built, updated, operated and maintained by CenturyLink since 2003.

Page 6 of 8 Pages fiber backbone. Competition is not feasible as a substantial duplication of cost of would be incurred that would not be recovered through competition. The duplication of cost was determined by estimating the replacement cost for the IRU, buried infrastructure, diverse access laterals, equipment installation, system integration, activation, and dedicated co-location facilities. Cost estimates were derived from historical contract costs for similar requirements. Fiber communication is required to continue past current contract expiration of 30 November 2018 and a failure to continue these services will result in detrimental harm to completion of DoD missions and warfighter deployment.

MOD 01: Failure to increase the ceiling would result in a disruption to DODIN operations. Exhausting the ceiling will bar the Government from future maintenance of over of diverse fiber property assets, end-to-end infrastructure, facilities, and equipment for the remaining term of the IRU.

Technical refreshes to incorporate new technology or increase bandwidth, network enhancements to , and fiber relocations for new construction or transferred assets cannot be completed unless the contract ceiling is increased.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

A waiver to post a Request for Information or Sources Sought notice on FedBizOpps was approved by the Head of the Contracting Activity. The Contracting Officer (KO) will post this

J&A to FedBizOpps within 14 days of the effective date of the contract action in accordance with FAR 6.305(a).

MOD 01: In accordance with DARS 206.302-1(S-90), the HCA has waived the requirement to issue a Request for Information or Sources Sought notice for procurement actions to increase the ceiling amount of a contract. The Contracting Officer will post this J&A modification to beta.SAM.gov 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 KO will determine whether CenturyLink’s proposed price is fair and reasonable before award. Certified cost or pricing data is not required for this commercial acquisition in accordance with FAR 15.403-1(b)(3). Proposal pricing of the sole source provider will be compared to an independent Government cost estimate, historical data, and published market prices for the service.

8. MARKET RESEARCH:

DISA-IE161 conducted market research for this subject requirement. Market research was based primarily on internal reviews of current fiber maintenance contracts within DISA. In addition, the market research team reviewed and analyzed the acquisition costs for a new fiber IRU, fiber

O&M costs, and co-location site and equipment O&M costs. Based on a price comparison of current DISA dark fiber contracts, market research indicates that CenturyLink’s current pricing

Page 7 of 8 Pages is fair and reasonable. CenturyLink’s current pricing will be used as a basis of comparison when determining their proposed price for this requirement as fair and reasonable. Other companies that install and provide fiber cable were identified; however, in order to meet the specific routing requirements, these sources would require an initial investment to establish the IRU agreement, purchase new fiber, and install said fiber. The acquisition of a new IRU, installation of fiber under this IRU, implementation of amplifier, regeneration, and junction nodes co-location facilities, and installation of diverse access laterals will result in a substantial duplication of cost

(approximately ). CenturyLink is the only contractor that will be able to continue maintaining the network to the design criteria to which the fiber infrastructure was built, updated, operated and maintained since 2003.

9. ANY OTHER SUPPORTING FACTS: None.

10. LISTING OF INTERESTED SOURCES:

CenturyLink, 2900 Towerview Road, Suite 170, Herndon, VA 20171

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History.

DCA100-99-C-4035

o Contractor: Qwest (dba CenturyLink, Inc.)

o Business Type: Large o Period of Performance: 20 May 1999-29 November 2008 o Basis of Award: Sole Source o Contract Type: FFP o Note: IRU and O&M added to DCA100-99-C-4035 in June 2003

HC1047-09-C-4000

o Contractor: CenturyLink, Inc.

o Business Type: Large o Period of Performance: 30 November 2008-29 November 2018 o Basis of Award: Sole Source o Contract Type: FFP

(b) The sole source nature of this action is driven by the IRU agreement between the

Government and the contractor. The IRU was established as a result of a sole source acquisition. The Government has invested a significant amount of money into the current

DISN structure and any effort to establish a different network would be a duplication of costs.

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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: ANGEL LASSITER

TITLE/ORGANIZATION: CONTRACTING OFFICER REPRESENTATIVE, IE16

PHONE: (301) 225-7205 DATE:

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: CHRISTOPHER PACZKOWSKI

TITLE/ORGANIZATION: INFRASTRUCTURE EXECUTIVE (IE)

PHONE: (301) 225-2000 DATE:

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

NAME: CORINNE HECK

TITLE/ORGANIZATION: CONTRACTING OFFICER, DISA/DITCO/PL8231

PHONE: (618) 418-6753 DATE:

HEAD OF THE CONTRACTING ACTIVITY APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since this justification for OTFAOC does not exceed $93M, this review serves as approval.

NAME: DOUGLAS PACKARD

TITLE: HEAD OF THE CONTRACTING ACTIVITY

PHONE: (301) 225-4123 DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Katie S. Day, 618-418-6265, katie.s.day.civ@mail.mil