JA14-057__HC1047-14-R-4002__Justification_REDACTED.pdf

HC1047-14-R-4002 Justification-JA14-057

JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

FAR Part 6 Justification, Supporting Procurements under FAR Part 12, FAR Subpart 13.501, and FAR Part 15

Purchase Request Number: TBD Contract Number: TBD Procurement Title: DODIN FIBER OCONUS Operation and Maintenance Contracting Office: DITCO NCR – PL64 Estimated Value:

Statutory Authority: 10 U.S.C. 2304(c)(1)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: JA14-057

Upon the basis of the following justification, I, as Senior Procurement Executive, 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) (FAR 6.302-1), only one responsible source and no other type of supplies or services will satisfy Agency requirements.

JUSTIFICATION

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

The Requiring Office is:

Defense Information Systems Agency DISN Center for Communications (NS1) P.O. Box 549 Ft Meade, MD 20755-0549

The Contracting Office is:

Defense Information Systems Agency Defense Information Technology Contracting Organization/NCR/PL64 P.O. Box 549 Ft Meade, MD 20755-0549

2. NATURE/DESCRIPTION OF ACTION(S): The purpose of this Justification and Approval (J&A) is to obtain approval for issuance of a 10-year contract as a follow-on to contract DCA100-03-C-4058 and subsequent bridge contract HC1047-14-C-4008 between DISA and Sprint Communications, L.P. DISA intends to fulfill these requirements through acquisition of a firm-fixed price contract. Fiscal Year 2015 through Fiscal Year 2024 Procurement, RDT&E, and Operation and Maintenance funding will be used. The estimated total value of the contract is .

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The estimated cost attributed to known requirements is . There are costs unknown at the time of award due to the inability to estimate equipment upgrade and replacement costs as well as technical expansion requirements. The total anticipated funding requirements of this contract action is estimated to be

4. IDENTIFICATION OF STATUTORY AUTHORITY: 10 U.S.C. 2304(c)(l), as implemented at FAR 6.302-1: the supplies or services needed by the agency are available from only one responsible source and no other type of supplies or services will satisfy the needs of the agency due to substantial duplication of cost to the United States, which is not expected to be recovered through competition.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events.

The original contract, executed per Acquisition Decision Memorandum (ADM) dated 3 January 2003 (MAIS-ACAT 1AM program), acquired dedicated commercial carrier fiber infrastructure assets via a capital lease for a 10-year period under a 25-year Indefeasible Right of Use (IRU). It also provides for professional services and Operation and Maintenance (O&M) support. The base period of the contract was for 2 years, with 8 option years. The IRU was fully paid for in the base period. The contract was executed under an approved Acquisition Strategy, dated 9 June 2003, and the Defense Information System Network (DISN) Global Information Grid Bandwidth Expansion (GIG-BE) Program Acquisition Plan, dated 25 February 2003. Section H.2 stipulates that follow-on contracts may be entered into for 15 years after the initial 10-year contract award.

(b) Justification:

(1) Minimum Government requirements. The Contractor is to provide continued Operational and Maintenance (O&M) support, technical enhancement, and professional services to the U.S. Government. The Contractor is to provide equipment and installation services to support the U.S. Government’s urgent and critical telecommunications Network Enhancement requirement.

(2) Proposed sole source Contractor. Sprint implemented the original Defense Information System Network (DISN) in Europe under the Global Information Grid bandwidth Expansion (GIG-BE) program. Sprint has the knowledge to repair and maintain components of the DISN to continue to meet the Government’s needs (performance, security, reliability, availability and sustainability) for a telecommunications network within the established DISN security guidelines. Sprint 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 Sprint since 2003.

(3) Discussion regarding cause of the sole source situation. Competition is not feasible due the fact that the Government procured an Indefeasible Right of Use (IRU) from Sprint through a competitive process. The resulting contract included an initial

Page 3 of 7 Pages investment of to establish the IRU. The initial investment was paid to Sprint in the base period of the initial contract. The IRU allows for up to 23 years of operation and maintenance services after the 2-year base period. The operation and maintenance costs are paid on a monthly basis without any additional lump sum investment. Using another source to continue the dedicated use of the fiber providing DoD communications in Europe would necessitate establishing a new IRU with another vendor. Any new IRU would require another initial investment plus monthly operation and maintenance costs. This initial investment would be a duplicative cost of up to which is not expected to be recovered through competition. Additionally, transitioning the DoD fiber communications to another network under a new IRU would cause major network outages due to transitions.

(4) Demonstration of unique source. Sprint has maintained and operated the fiber backbone for the last 10 years and currently serves as the Optical layer network manager of the DISN. Sprint is in the position to continue to provide maintenance and repair services at the Government sites and service delivery nodes. No provider, other than the existing Contractor, is capable of providing the services required without duplicative costs to be incurred by the Government.

(5) Procurement discussion. This contracting action is necessary to ensure Government-purchased capital property (i.e., the IRU) is maintained and available for the Government’s use to support the warfighter, the National Command Authority, Combatant Commanders, and the DoD enterprise. Failure to continue these services with the current provider would result in an unacceptable gap in service that will be detrimental to the DoD and other Government users. Leasing the fiber is not an option as the Government has a contractual IRU agreement with Sprint, Inc. that cannot be transferred. Additionally, leasing or procuring different fiber would require a transition time of up to 1 year to transfer fiber communications from the current network to a new one. During the transition, communication will be lost or severely reduced. Transitioning to another service provider will result in a substantial duplication of cost for a replacement IRU agreement and will not meet the requirements in the time required.

(6) Impact: Failure to obtain these services from the incumbent Contractor would result in wasting a multi-million dollar capital investment and would lead to duplication of costs already invested in installing and making operational the current fiber backbone.

Awarding a contract to another fiber provider would result in an unacceptable gap in service for critical DoD fiber communication needs. A new provider would require the establishment of another IRU and leasing is not an alternative for the Government due to the transition time required.

6. FEDBIZOPPS ANNOUNCEMENT: Notice of the proposed contractual action in accordance with FAR 5.2 was published on 5 February 2014. The Contracting Officer will post this Justification and Approval (J&A) to FedBizOpps within 14 days of the effective date of the contact action in accordance with FAR 6.305(a).

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION.

(a) Procurement History.

Contract Number: DCA100-03-C-4058 Contractor: Sprint Communications Contract Period: Base period of 2 years commencing 24 Sep 2003 and ending 23 September 2005. Eight (8) 1-year option periods were included. Contract expired September 23, 2013 and was extended through 22 March 2014.

Type of Acquisition: Competitive

Contract Number: HC1047-14-C-4008 Contractor: Sprint Communications Contract Period: Base period of 4 months commencing 23 March 2014 and ending 22 July 2014. One 1-month option period and one 1-month 7-day option period are included. Total period of performance is 23 March 2014 – 30 September 2014.

Type of Acquisition: Sole-Source

(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 competitive 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.

(c) The Government will continue to conduct market research to identify any emerging sources or alternative methods to meeting the requirement. Market research will be conducted annually, at a minimum, and will be considered in the determination to exercise options under the resulting contract.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): The purchase of the IRU and the first 10 years of maintenance were approved under the DISN GIG-BE Acquisition Plan for Fiber, dated 25 February 2003, and procured under contract DCA100-03-C-4058. The Acquisition Plan for this follow-on contract has been developed and is being routed concurrently with this Justification and Approval.

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