HC1013-19-P-0003,_Redacted_J&A.pdf

Dania Beach Dark Fiber Project

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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, FAR Subpart 13.5, and FAR Part 15

Purchase Request Number: TBD Contract Number: TBD Task/Delivery Order Number: TBD Procurement Title: Dania Beach Dark Fiber Project Estimated Value:

Statutory Authority: FAR 6.302-1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: N/A

Upon the basis of the following justification, I, as the Contracting Officer, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 10 U.S.C. 2304(c)(1).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

Defense Information Systems Agency (DISA) Infrastructure Executive, Special Projects Branch (IE15) PO Box 549 Fort Meade, MD 20755

Contracting Activity:

DISA/Defense Information Technology Contracting Organization (DITCO)/PL8231 2300 East Drive, Bldg. 3600 Scott AFB, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S): DISA currently has a dark fiber contract (HC1013-15-P-0001) with Futaris, Inc. to provide connectivity between the Guantanamo Bay (GTMO) to the Continental United States (CONUS) submarine cable landing station at the U.S.

Navy’s South Florida Ocean Measurement Facility (SFOMF) at Dania Beach, FL and the Department of Defense Information Network (DODIN) node in the Equinix Inc. Internet Exchange Point at . Futaris Inc. was awarded the contract in March 2015 and subcontracted with Level 3 Communications, LLC. In November 2016, Futaris Inc. notified DITCO of their intent and desire to close Futaris Inc. and they explored different avenues to novate contract HC1013-15-P-0001 to “sister companies” under their large parent company, Calista Corporations. As those attempts appeared unsuccessful, Futaris submitted a letter to DITCO in November 2018, which expressed their desire for a formal closure of Futaris Inc. and .

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Futaris Inc. states they only provide minimal administration support to the contract to date. The current contract period of performance expires March 24, 2019.

This action seeks approval to replace the existing contract with a sole source award for identical O&M support to Level 3 Communications, LLC., whom already provides this support to DISA on behalf of Futaris, effective March 25, 2019. The Project Manager is requesting the existing operations and maintenance agreement covered under HC1013-15-P-0001 be transferred under this sole source action. This will be a firm fixed price contract, with a period of performance of a one-year base period and nine one-year option periods (March 25, 2019 – March 24, 2029).

3. DESCRIPTION OF SUPPLIES/SERVICES: DISA requires diverse dark fiber connectivity (to include O&M) between the GTMO-CONUS submarine cable landing station in Dania Beach and the Equinix facility in Miami to maintain DODIN connectivity for DoD organizations at Guantanamo Bay. The submarine cable terminal equipment is located

To ensure continuity of operations, this contract must begin at on March 25, 2019, the date/time at which the Futaris contract will end. The estimated period of performance is a one-year base period, plus nine one-year option periods for a total estimated cost of

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). (FAR 6.302-

1/DFARS 206.302-1).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS: Market research was conducted in preparation for the original contract award to Futaris (HC1013-15-P- 0001) in 2015, and indicated there were, at that time, no existing sources for dark fiber connectivity between Dania Beach and Equinix Miami. HC1013-15-P-0001 funded the installation and activation of the first and still only (per market research conducted for this effort) dark fiber connections between those two terminals.

(a) Description of events.

(1) Futaris Inc. was awarded the previously referenced contract as an 8(a) sole source award in 2015. They subcontracted installation of the fiber optic cable to Level 3 Communications, LLC. Futaris served as the Program Management administration support of the contract,

(2) In November 2018, Futaris notified the Government that it is ceasing operations and requested termination of the existing contract, effective at the end of the current option year on March 24, 2019.

(4) The Government considered relocation of the submarine cable terminal equipment to Dania Beach, which would have permitted the Government to switch connectivity to lit services; however, there is no space in the facility at Dania Beach for the terminal katie.day Sticky Note Rejected set by katie.day

Page 3 of 5 Pages equipment. A much more expensive Military Construction (MILCON) project at Dania Beach would be required.

(5) Therefore, the Government has concluded that the only viable option is a sole source contract award to Level 3 Communications, LLC., which is currently providing the O&M services as a subcontractor to Futaris; and furthermore, Level 3 owns the dark fiber infrastructure on Dania Beach.

(6) It is critical that the new contract be fully in place effective March 25, 2019 to ensure continuity of service to Naval Station Guantanamo Bay, the Joint Task Force – Guantanamo Bay (JTF-GTMO) detention facility, and the Office of Military Commissions at GTMO.

(b) Justification.

(1) Minimum Government requirements. The Government requires two diverse dark fiber paths (to include O&M) (details as specified in the PWS) connecting the GTMO- CONUS submarine fiber optic cable (SFOC) landing station at the SFOMF at Dania Beach, FL, and the Equinix Inc. Internet Exchange Point at

. The performance-start date, March 25, 2019, is critical to ensure continuity of service, as the existing contract will expire March 24, 2019. Any other vendor would not be able to meet this deadline, as they would need to procure, install, test, and integrate the dark fiber strands in under two month timeframe. In addition, award of this contract to any other vendor would result in the Government paying a second time for installation of a cable between the two terminal points.

(2) Proposed sole source contractor. Level 3 Communications remains the only available supplier of the required dark fiber connections (based on current market research).

The original contract with Futaris included a non-recurring implementation cost of nearly which would reasonably be expected to be incurred again through a competitive process award to a different vendor. Level 3 has confirmed the Government will not incur another non-recurring charge with the transfer of the under contract HC1013-15-P-0001 to this sole source action. It is also extremely unlikely a different vendor could meet the required operational date of March 25, 2019.

(3) Discussion regarding cause of the sole source situation. Competition will not be available until another vendor installs and makes available dark fiber for the Government’s use. Given the remote location of the Dania Beach cable landing station, it is extremely unlikely another vendor will be available in the near future.

Level 3, as the fiber owner and grantor , has sole control and access to the fiber and equipment and no other contractor is in the position to provide the maintenance and repair services required.

(4) Demonstration of unique source. Market research included reviews of the Market Research Repository, Professional Journals, Internet sources, and existing ID/IQ contract vehicles as well as interview of subject matter experts and direct engagement with vendors with infrastructure near the requirement. The dark fiber link that requires the O&M is on Level 3 fiber and routes through Level 3 facilities. Detailed market research for similar efforts has shown that only the contractor that owns the fiber has the access and control necessary to provide any O&M efforts.

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(5) Impact. Failure to award to Level 3 Communications, LLC., will lead to a gap in service, starting March 25, 2019, effectively isolating the GTMO-CONUS submarine cable from the DoD network. This would create an unacceptable impact to mission essential services. It will also result in higher costs to the Government through either high reseller mark-ups or new implementation costs for new physical cables and a loss of the Government’s initial investment.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES: A waiver to post a Request for Information or Sources Sought noticed on FedBizOpps was approved by the Head of the Contracting Activity. The Contracting Officer 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).

7. DETERMINATION OF FAIR AND REASONABLE COST: The Contracting Officer will make a determination of fair and reasonable costs by using the techniques of FAR 15.404- 1(b)(2)(ii), comparison of propose prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items. The pricing for O&M awarded under HC1013-15-P-0001 was found fair and reasonable at time of contract award, and the Contracting Officer will ensure all proposed costs compare favorably.

8. MARKET RESEARCH: Market research included reviews of the Market Research Repository, Professional Journals, Internet sources, and existing ID/IQ contract vehicles (GNS) as well as interview of subject matter experts and direct engagement with the only other vendor (AT&T) with infrastructure near the requirement. All research indicates Level 3 is the only vendor able and willing to provide the dark fiber connections required at Dania Beach. In accordance with DARS 206.302-1, a waiver to post a Request for Information or Sources Sought noticed on FedBizOpps was approved by the Head of the Contracting Activity.

9. ANY OTHER SUPPORTING FACTS: None.

10. LISTING OF INTERESTED SOURCES: Level 3 Communications, LLC.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

The only actions the Government can take to eliminate the exception to full and open competition would be to conduct an open competition and pay for implementation of a new physical cable connection (estimated at , which the Government has already invested), or conduct a set-aside open competition and award to a small business that would then sub-contract to Level 3, thus adding significant pass-through charges that add no benefit to the Government.

Additionally, the sole source nature of this action is driven by the IRU agreement under

HC1013-15-P-0001.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): An acquisition plan is not required for this requirement.

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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: Christopher E. Conaway

TITLE/ORGANIZATION: Project Manager, DISA IE15

PHONE: DATE: 12 Mar 19

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 E. Conaway

TITLE/ORGANIZATION: Project Manager, DISA IE15

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief. Since this effort exceeds $150K but does not exceed $700K, this certification serves as APPROVAL.

NAME: Katie S. Day

TITLE/ORGANIZATION: Contracting Officer, DISA PL8231

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Taneisha M. Harper,