JEFO_HHSP233201700195W_Signed.pdf

PDF 3 MB Posted Sep 25, 2019

Attached to: Equinix Data Centers Cloud Computing Hybrid Infrastructure and Services
Solicitation number: HHSP233201700195W
Issued by: Department of Health and Human Services Program Support Center

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Justification for an Exception to Fair Opportunity

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Template for a Justification for an Exception to Fair Opportunity

This template is not for use (i) with small business set asides in accordance with FAR 16.505(b)(2)(i)(F), nor (ii) for Federal Supply Schedule contracts awarded pursuant to FAR 8.4. See FAR Subpart 16.5 for additional guidance.

Tailor all aspects of this template to the individual acquisition. Consult FAR 16.505 for guidance. An addendum may be added in case additional space is needed.

When this document is printed, the blue italic instructions are automatically deleted on the printed version.

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Acquisition Title: Equinix Data Centers Cloud Computing Hybrid Infrastructure and Services (HHSP233201700195W)

Agency: PSC

PSC Divisions: ASA - Assistant Secretary for Administration

Acquisition Year (FY): 2019

Author: Thu M. Do

2. Description of Action:

Nature: New Requirement Follow-on Order

Modification to Existing Delivery/Task Order/Contract Number: HHSP233201700195W

Order Against: Multiple Award ID/IQ Contract Number:

Pricing: Firm-Fixed Price Time & Materials Cost Type

Funds: OMA Other Funds:

3. Description of Applicable Contract Provisions:

Summarize all contract provisions relevant to this determination.

The following contract provisions will be modified: Section B, to add the revised payment and pricing schedule; Section C, to add the new CLINs; and, Section I to add the new clause to exercise optional tasks.

4. Description of Supplies or Services:

The estimated value of the proposed action, including all options, is: $ 900,000

Briefly describe the supplies or services to be provided, including make & model number where appropriate.

• Indicate whether the item to be procured is peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product, peculiar to one manufacturer).

• If applicable, include quantities of supplies or period of performance for services. Provide information for any options included in the order.

• If the action is a modification to an existing order, distinguish clearly between the work covered by the basic order and the work to be obtained by the proposed modification; provided that if the action is to extend an existing order utilizing the -8 extension of services clause, this must be discussed.

OIG is requesting a mod to this task order to add the optional tasks for data center services. OIG anticipates future growth; therefore there is a need to expand the data centers and co-location services, The optional tasks will help OIG meet the immediate business demands, achieve the infrastructure deployment speed and scale, satisfy a variety of bandwidth requirements and multiple private interconnect requirements such as internet connection, metro connection, cross connects etc. The following optional tasks need to be incorporated into the contract:

Optional CLIN 1: The contractor shall support the upgrades for the existing services such as port upgrades, bandwidth upgrades, Cloud Exchanges, Metro Connect or Cross connect upgrades. The upgrades are required to satisfy a variety bandwidth and connectivity requirements.

Optional CLIN 2: The contractor shall provide additional interconnections and connectivity to meet OIG’s business requirements to connect data centers to the cloud or external systems.

Optional CLINs can be exercised at any time during the active period of performance. Optional CLINs will be funded using funds current at the time the option is exercised (after determination that the services represent a bona fide need of that fiscal year). Optional CLINs, if exercised, will be exercised through written modifications to the contract. The Contractor shall be given 30 days written notice of the Government’s intent to exercise an Optional CLIN.

The period of performance for each Optional CLIN will be 12-months.

5. Authority and Rationale:

The Contracting Officer shall give every awardee a fair opportunity to be considered for a delivery/task order exceeding the micro purchase threshold unless one of the following statutory exceptions applies. FAR 16.505(b)(2). Mark the applicable exception:

The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays [FAR 16.505(b)(2)(i)(A)];

Factually establish the urgent need, provide the required performance/delivery schedule, address the lead-time involved, address why other contractors cannot fulfill the government’s needs, and explain the harm/serious injury that will come to the government if the justification is not approved.

Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized [FAR 16.505(b)(2)(i)(B)];

Explain what is unique or highly specialized about the supply or service, what level of quality is required and why only the specified contractor can meet the requirement. If the requirement is an item peculiar to one manufacturer, justify the restriction to the item peculiar to one manufacturer.

The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order [FAR 16.505(b)(2)(i)(C)];

Provide the original order number and explain why it is a logical follow-on to an order already issued under the contract, for example, in terms of scope, period of performance or value. Describe the process by which all awardees were given a fair opportunity to be considered for the original order. Specify how recent the previous competitive order was and the number of times this exception has been used; discuss why the specific requirement continues and why it is to the benefit of the Government for the particular contractor to continue this work.

This is a logical follow-on in terms of scope. The additional CLINs represent the continuation of the project and OIG’s steps forward on the data center services already provided by the current contractor, Accelera Solutions. Accelera, as an Equinix partner, presently provides the Equinix Data Center Cloud computing Hybrid Infrastructure and services, such as physical space, connections, and ports, to OIG for the OIG East and West regions. All OIG network equipment and infrastructure are physically located in cages that are provided by Accelera under the existing task order. Accelera provides the connections from the Equinix Data Centers to OIG locations and other cloud service providers such as Cross Connect, Direct Connect, Metro Connect, and Amazon Web Services. Accelera owns and maintains all the connections. OIG has on-going projects to maximize network bandwidth and enhance network connections from its data centers.

To establish any new connections to any locations or any cloud environments such as ServiceNow, Azure, or AWS, OIG must order and use the connections from Accelera. The connections help OIG to get direct and fast connections to cloud services, enabling OIG’s cloud strategies. Two different resellers could not occupy the same cage, as it creates liability risks and issues. The optional CLINs will allow OIG to order additional connections under the existing contract with Accelera.

Modifying the existing task order to add the optional CLINs will result in cost and time efficiencies. Accelera is already providing the services and infrastructure and the current task order has option periods through August 2022. In terms of administrative costs, it is more advantageous to the Government to modify the existing task order to add the optional CLINs. Also, the optional CLINs allow flexibility in terms of exercising them only when necessary. A new contractor would result in the physical movement of OIG servers from Accelera’s cages to the new contractor’s cages, resulting in unacceptable downtimes and possible system failure and data loss, in addition to potential additional costs and administrative burdens related to transitioning the servers from one cage to another. Accelera provides OIG with the ability to scale its network services and network bandwidth in the data centers to support 85+ locations by providing connectivity via its Cloud Exchange, which allows access to over 100 cloud partners across the world. Accelera’s partnership with Equinix, as well as other Cloud Service Providers, offers OIG the flexibility to design a customized cloud computing solution that will optimize the HHS OIG information technology environment and improve security, minimize risk, and maximize efficiency. Accelera provides OIG with reliable, scalable, and secure connectivity, boosting performance and end user satisfaction. OIG is able to reduce the amount of time spent on troubleshooting connectivity and bandwidth issues, which is again, more economical in terms of cost and time.

The original solicitation was made available on NASA SEWP as a small business set-aside and fair opportunity was provided to all eligible SEWP contractors. Accelera Solutions was the only firm to submit a response. This exception has only been used once, for this specific request. The current task order consists of a 12-month base period and four 12-month option periods. The final option period does not expire until August 30, 2022.

It is necessary to place the order to satisfy a minimum guarantee [FAR 16.505(b)(2)(i)(D)]; or When citing exception to the fair opportunity process under FAR 16.505(b)(2)(iv), identify the contract clause and language that specifies the minimum guaranteed amount.

A statute expressly authorizes or requires that the purchase be made from a specified source. [FAR 16.505(b)(2)(i)(E)].

Provide a citation to the statutory authorization and a brief description of its content, or identify the specified source or other agency.

6. Agency Actions to Take or Remove Barriers That Led to Fair Opportunity Exception (If applicable):

Describe the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration prior to any subsequent acquisition for the supplies of services is made. If no such actions have been taken, explain why.

OIG is working on a new procurement for contract under NITACC to acquire the SD-WAN technology connectivity from OIG data centers to OIG locations. In addition, OIG has joined the Enterprise Infrastructure Solutions (EIS) contract for the MTIPS connection in the data centers. The MTIPS connection provides a path to access external internet from a HHS computer or system. The two contract efforts would help OIG to ensure that future requirements will not be tied to brand name or sole source restrictions.

7. Fair and Reasonable Price/Cost Determination: I hereby determine that the anticipated price/cost for this contract action will be fair and reasonable.

Insert a description of the techniques and applicable FAR provisions (e.g. FAR 15.404-1(b)) used to ensure award will be at fair and reasonable cost. For example, did the Contracting Officer use a comparison of industry cost for similar work? The Independent Government Cost Estimate (IGCE) will primarily be an analysis of the contractor’s proposed cost. Additionally, the techniques identified at (e.g. FAR 15.404-1(c)(2)(iii)) will be used to further ensure award will be at fair and reasonable prices. In addition, specify whether or not Certified Cost and Pricing Data will be obtained.

The prices of products on the SEWP catalog are determined to be fair and reasonable at the contract level. The optional tasks will cover service upgrades and additional interconnection / connectivity services. The task order provides what are known as “flexCLINs,” which allows OIG to pay a monthly recurring charge for a fixed number of units (e.g., 100 per month) that are exchangeable cloud related consumption or products. In this case they are “exchanged” for the data center connection services. With this modification, OIG will have the flexibility to buy more units for more connections, on an as-needed basis.

Signature: Date: 8/26/2019

Name: Victoria West Estabrook

Title: Contracting Officer

8. Any other facts supporting the justification:

N/A

9. Technical / Requirements Certification: By my signature below, I certify that the supporting data under my review which is included in this Justification for an Exception to Fair Opportunity is accurate and complete.

Program Manager

Name: Thu Do

Position Title: OMD Deputy Director

Email address: thu.do@oig.hhs.gov

Phone: 202-603-1012

Program Manager Supervisor (or one level above Program Manager)

Name: Hassen Sheikh

Position Title: OMD Director

Email address: Hassen.Sheikh@oig.hhs.gov

Signature:

Date: 08/26/2019

10. Contracting Officer's Approval (Required for proposed contract not to exceed $700,000 (value calculated including all options)): I hereby certify that this justification is accurate and complete to the best of my knowledge. I approve this sole source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

Name: Victoria West Estabrook Phone: 301-492-4729

Signature: Date: 8/26/2019

11. Legal Review:

All J&As greater than $68 million must have a legal review from the General Law Division of the Office of the General Counsel prior to sending it to the Department.

12. OPDIV Competition Advocate Approval (Required for proposed contract over $700,000 but not exceeding $13.5 million value calculated including all options)):

I have reviewed this justification and find that it adequately supports an exception to fair opportunity.

Name: Melissa McAbee Phone: 301-492-4710

Signature: Date: 28 August 2019

13. Office of Small and Disadvantaged Business Utilization:

I have reviewed this justification and find that it adequately supports an exception to fair opportunity.

Name: Phone:

Signature: Date:

14. OPDIV HCA Approval (Required for proposed contract over $13.5 million but not exceeding $68 million value calculated including all options)):

Name: Phone:

Signature: Date:

15. Department Competition Advocate:

Concur: Non-Concur:

(The below approval paragraph is required if the cumulative contract value, including all options, exceeds $68 million.)

16. HHS Senior Procurement Executive (SPE) Approval:

Based on the foregoing justification, I hereby approve the procurement of stated supplies/services being procured on the exception to the fair opportunity basis pursuant to the authority of paragraph 5, 41 U.S.C. 4101, as implemented by FAR 16.501-2.

State supplies/services being procured:

Optional CLIN 2: The contractor shall provide additional interconnections and connectivity to meet OIG’s business requirements to connect data centers to the cloud or external systems.

The period of performance for each Optional CLIN will be 12-months.

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304:

Template for a Justification for an Exception to Fair Opportunity

Completion Instructions: HHS has established a standard template for the preparation of a Justification for an Exception to Fair Opportunity pursuant to FAR Subpart 16.5 for orders valued at greater than the simplified acquisition threshold, including all options. This template is only applicable when requesting an acquisition as an exception to the fair opportunity process for task- and delivery-order contracts awarded against multiple-award contracts, such as indefinite delivery, indefinite quantity contracts. This template is not for use (i) with small business set asides in accordance with FAR 16.505(b)(2)(i)(F), nor (ii) for Federal Supply Schedule contracts awarded pursuant to FAR 8.4. See FAR Subpart 16.5 for additional guidance.

Tailor all aspects of this template to the individual acquisition. Consult FAR 16.505 for guidance. An addendum may be added in case additional space is needed.

When this document is printed, the blue italic instructions are automatically deleted on the printed version.

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

2. Description of Action:

Nature:

Order Against:

Multiple Award ID/IQ Contract Number:

Pricing:

Funds:

3. Description of Applicable Contract Provisions:

Summarize all contract provisions relevant to this determination.

4. Description of Supplies or Services:

Briefly describe the supplies or services to be provided, including make & model number where appropriate.

· Indicate whether the item to be procured is peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product, peculiar to one manufacturer).

· If applicable, include quantities of supplies or period of performance for services. Provide information for any options included in the order.

· If the action is a modification to an existing order, distinguish clearly between the work covered by the basic order and the work to be obtained by the proposed modification; provided that if the action is to extend an existing order utilizing the -8 extension of services clause, this must be discussed.

5. Authority and Rationale:

When citing exception to the fair opportunity process under FAR 16.505(b)(2)(iv), identify the contract clause and language that specifies the minimum guaranteed amount.

Provide a citation to the statutory authorization and a brief description of its content, or identify the specified source or other agency.

6. Agency Actions to Take or Remove Barriers That Led to Fair Opportunity Exception (If applicable):

7. Fair and Reasonable Price/Cost Determination: I hereby determine that the anticipated price/cost for this contract action will be fair and reasonable.

Signature:

Date:

Name:

Title:

Contracting Officer

Program Manager Name:

Position Title:

Email address:

Phone:

Program Manager Supervisor (or one level above Program Manager) Name:

Position Title:

Email address:

Signature:

Date:

Name:

Phone:

Signature:

Date:

11. Legal Review:

All J&As greater than $68 million must have a legal review from the General Law Division of the Office of the General Counsel prior to sending it to the Department.

12. OPDIV Competition Advocate Approval (Required for proposed contract over $700,000 but not exceeding $13.5 million value calculated including all options)):

I have reviewed this justification and find that it adequately supports an exception to fair opportunity.

Name:

Phone:

Signature:

Date:

13. Office of Small and Disadvantaged Business Utilization:

I have reviewed this justification and find that it adequately supports an exception to fair opportunity.

Name:

Phone:

Signature:

Date:

14. OPDIV HCA Approval (Required for proposed contract over $13.5 million but not exceeding $68 million value calculated including all options)):

Name:

Phone:

Signature:

Date:

15. Department Competition Advocate:

Concur:

Non-Concur:

Name:

Phone:

Signature:

Date:

(The below approval paragraph is required if the cumulative contract value, including all options, exceeds $68 million.)

16. HHS Senior Procurement Executive (SPE) Approval:

State supplies/services being procured:

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304:

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304 Name:

Phone:

Signature:

Date:

11.0.0.20130303.1.892433.887364 Justification & Approval - Exemption to Fair Opportunity Health and Human Services Justification & Approval - Exemption to Fair Opportunity

AcquisitionTitle: Equinix Data Centers Cloud Computing Hybrid Infrastructure and Services (HHSP233201700195W)

Agency: PSC

NIHDrop:

PSCDrop: ASA - Assistant Secretary for Administration

PSCOther:

AcqusitionYear: 2019

Author: Thu M. Do

CheckBox4: 0

CheckBox5: 0

CheckBox1: 1

Purchase Order/Contract Number: HHSP233201700195W

ID/IQ Number:

CheckBox8: 1

CheckBox7: 0

CheckBox6: 0

CheckBox10: 0

CheckBox11: 0

Other Funds:

Insert a description of the techniques and applicable FAR provisions (e.g. FAR 15.404-1(b)) used to ensure award will be at fair and reasonable prices. For example, did the Contracting Officer use a comparison of industry cost for similar work? The Independent Government Cost Estimate (IGCE) will primarily be an analysis of the contractor’s proposed cost. Additionally, the techniques identified at (e.g. FAR 15.404-1(c)(2)(iii)) will be used to further ensure award will be at fair and reasonable prices. IN addition, specify whether or not Certified Cost and Pricing Data will be obtained.: This is a logical follow-on in terms of scope. The additional CLINs represent the continuation of the project and OIG’s steps forward on the data center services already provided by the current contractor, Accelera Solutions. Accelera, as an Equinix partner, presently provides the Equinix Data Center Cloud computing Hybrid Infrastructure and services, such as physical space, connections, and ports, to OIG for the OIG East and West regions. All OIG network equipment and infrastructure are physically located in cages that are provided by Accelera under the existing task order. Accelera provides the connections from the Equinix Data Centers to OIG locations and other cloud service providers such as Cross Connect, Direct Connect, Metro Connect, and Amazon Web Services. Accelera owns and maintains all the connections. OIG has on-going projects to maximize network bandwidth and enhance network connections from its data centers. To establish any new connections to any locations or any cloud environments such as ServiceNow, Azure, or AWS, OIG must order and use the connections from Accelera. The connections help OIG to get direct and fast connections to cloud services, enabling OIG’s cloud strategies. Two different resellers could not occupy the same cage, as it creates liability risks and issues. The optional CLINs will allow OIG to order additional connections under the existing contract with Accelera.

	Insert a description of the techniques and applicable FAR provisions (e.g. FAR 15.404-1(b)) used to ensure award will be at fair and reasonable prices. For example, did the Contracting Officer use a comparison of industry cost for similar work? The Independent Government Cost Estimate (IGCE) will primarily be an analysis of the contractor’s proposed cost. Additionally, the techniques identified at (e.g. FAR 15.404-1(c)(2)(iii)) will be used to further ensure award will be at fair and reasonable prices. IN addition, specify whether or not Certified Cost and Pricing Data will be obtained.: OIG is working on a new procurement for contract under NITACC to acquire the SD-WAN technology connectivity from OIG data centers to OIG locations. In addition, OIG has joined the Enterprise Infrastructure Solutions (EIS) contract for the MTIPS connection in the data centers. The MTIPS connection provides a path to access external internet from a HHS computer or system. The two contract efforts would help OIG to ensure that future requirements will not be tied to brand name or sole source restrictions.
	Insert a description of the techniques and applicable FAR provisions (e.g. FAR 15.404-1(b)) used to ensure award will be at fair and reasonable prices. For example, did the Contracting Officer use a comparison of industry cost for similar work? The Independent Government Cost Estimate (IGCE) will primarily be an analysis of the contractor’s proposed cost. Additionally, the techniques identified at (e.g. FAR 15.404-1(c)(2)(iii)) will be used to further ensure award will be at fair and reasonable prices. IN addition, specify whether or not Certified Cost and Pricing Data will be obtained.: The prices of products on the SEWP catalog are determined to be fair and reasonable at the contract level. The optional tasks will cover service upgrades and additional interconnection / connectivity services. The task order provides what are known as “flexCLINs,” which allows OIG to pay a monthly recurring charge for a fixed number of units (e.g., 100 per month) that are exchangeable cloud related consumption or products. In this case they are “exchanged” for the data center connection services. With this modification, OIG will have the flexibility to buy more units for more connections, on an as-needed basis.
	TextField7: 900,000
	Briefly describe the supplies or services to be provided, including make & model number where appropriate.
·	Indicate whether the item to be procured is peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product, peculiar to one manufacturer).
·	If applicable, include quantities of supplies or period of performance for services. Provide information for any options included in the order.
·	If the action is a modification to an existing order, distinguish clearly between the work covered by the basic order and the work to be obtained by the proposed modification; provided that if the action is to extend an existing order utilizing the -8 extension of services clause, this must be discussed.: OIG is requesting a mod to this task order to add the optional tasks for data center services. OIG anticipates future growth; therefore there is a need to expand the data centers and co-location services, The optional tasks will help OIG meet the immediate business demands, achieve the infrastructure deployment speed and scale, satisfy a variety of bandwidth requirements and multiple private interconnect requirements such as internet connection, metro connection, cross connects etc. The following optional tasks need to be incorporated into the contract:

Optional CLIN 2: The contractor shall provide additional interconnections and connectivity to meet OIG’s business requirements to connect data centers to the cloud or external systems.

The period of performance for each Optional CLIN will be 12-months.

CheckBox12: 0

CheckBox13: 0

CheckBox14: 1

CheckBox15: 0

CheckBox16: 0

HHS Senior Procurement Executive (SPE) signature:

Contract Officer's Approval date: 8/26/2019

Contract Officer's Approval name: Victoria West Estabrook

HHS Senior Procurement Executive (SPE) phone: N/A

HHS Senior Procurement Executive (SPE) phone: 301-492-4729

HHS Senior Procurement Executive (SPE) phone: 301-492-4710

Program Manager name: Thu Do

Program Manager position title: OMD Deputy Director

Program Manager email address: thu.do@oig.hhs.gov

Program Manager phone: 202-603-1012

Program Manager Supervisor name: Hassen Sheikh

Program Manager Supervisor position title: OMD Director

Program Manager Supervisor email address: Hassen.Sheikh@oig.hhs.gov

Program Manager Supervisor date: 08/26/2019

filepath:

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304:

HHS Senior Procurement Executive (SPE) name: Melissa McAbee

DateField6: 28 August 2019

Office of Small Business date:

OPDIV HCA date:

Concur with Acquisition: 0

Non-Concur with Acquisition: 0

HHS Senior Procurement Executive (SPE) date:

State supplies/services being procured: OIG is requesting a mod to this task order to add the optional tasks for data center services. OIG anticipates future growth; therefore there is a need to expand the data centers and co-location services, The optional tasks will help OIG meet the immediate business demands, achieve the infrastructure deployment speed and scale, satisfy a variety of bandwidth requirements and multiple private interconnect requirements such as internet connection, metro connection, cross connects etc. The following optional tasks need to be incorporated into the contract:

Optional CLIN 2: The contractor shall provide additional interconnections and connectivity to meet OIG’s business requirements to connect data centers to the cloud or external systems.

The period of performance for each Optional CLIN will be 12-months.

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