JA20-079 NUWC redactions_Redacted.pdf

JUSTIFICATION & APPROVAL (J&A) FOR FEDERAL ACQUISITION

REGULATION (FAR) SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule/Multiple Award Contract (MAC)

Orders under MAC/ Fair Opportunity – FAR 16.505, Department of Defense (DoD) FAR Supplement (DFARS) 216.505-70, Procedures, Guidance and Information (PGI) 216.505-70

Purchase Request Number: 821913962 Contract Number: GS00Q17NSD3004 Task/Delivery Order Number: To be determined Procurement Title: Enterprise Infrastructure Solutions (EIS) Naval Underwater Warfare Center

(NUWC)

Estimated Value Statutory and Regulatory Authority: 10 U.S.C. 2304c(b) and FAR 16.505(b)(2)(i)(B)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: JA20-081

Upon the basis of the following justification, I, as the Head of Contracting Activity, hereby approve this exception to fair opportunity pursuant to the Statutory Authority of 10 U.S.C.

2304c(b) and Regulatory Authority of FAR 16.505(b)(2)(i)(B).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

NUWC

1176 Howell St Bldg 111F Newport, RI 02841-1703

Contracting Activity:

Defense Information Systems Agency (DISA)/Defense Information Technology Contracting Organization (DITCO) PL8213 2300 East Drive Bldg 3600 Scott AFB, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S): The purpose of this J&A is to award a Fixed Price (FP) Economic Price Adjustment (EPA) Task Order (TO) off General Services Administration’s (GSA’s) EIS Indefinite Delivery Indefinite Quantity (IDIQ) contract vehicle to Verizon, a large business. The TO will provide for implementation of a new telecommunication services network solution in support of the NUWC in Rhode Island. This telecommunication services network solution will modernize NUWC’s telecommunication services, which consists of Virtual Private Network Service (VPNS), Internet Protocol Voice Service (IPVS), Managed Network Service (MNS), Managed Trusted Internet Protocol Service (MTIPS), and Access Arrangements (AA). The period of performance will be for one, 12-month base period, 11, one-year option periods through July 30, 2032. Operations and Maintenance funds will be used to fund this effort.

EIS Naval Underwater Warfare Center (NUWC) – JA20-081

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4. SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE

ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

(a) Exception to Fair Opportunity.

The exception as outlined in FAR 16.505(b)(2)(i)(B) apply in this acquisition:

Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

(b) Description of the Justification. NUWC is the Research and Development (R&D) Division for all Underwater Tactical and Non-tactical Systems for the Navy. Verizon has developed and implemented a secure Multi-Protocol Label Switching (MPLS) network within their Government Network Operations and Security Center (GNOSC). The NUWC network implemented and supported by Verizon is a critical, real-time infrastructure that supports these R&D efforts. Verizon’s proprietary MPLS Network supports NUWC mission and multiple agencies at one of the government’s largest remote sites on Andros Island, Bahamas. Verizon is the only vendor able to provide service at these remote locations that are necessary for NUWC to carry out its mission. Within the last three years, NUWC has transitioned all transport circuits within the Verizon GNOSC MPLS infrastructure. Additionally, NUWC now has accreditation for the various networks using the Verizon GNOSC MPLS network. Based on Verizon being the only source available to provide service to NUWC remote sites and owning the current infrastructure, Verizon is the only available source that can meet the agency’s unique requirements

(c) Justification.

(1) Minimum Government requirements.

NUWC has a very unique and specialized mission that requires voice and data services and management support necessary to successfully conduct day-to-day mission critical operations. Users at NUWC require connectivity from their remote locations to the central communication office. This connectivity and these services must be operational and maintained 24x7 for mission success.

(2) Proposed sole source contractor.

The proposed sole source contractor is Verizon Federal Inc., 22001 Loudon County Parkway, Ashburn, VA 20147.

(3) Discussion regarding cause of the sole source situation.

Through TOs issued on the GSA Networx contract, NUWC began working with Verizon to create a secure MPLS network that expands to all remote sites utilizing the Verizon MPLS and GNOSC services. Additionally, NUWC supports mission critical remote sites in support of Homeland Security, Federal Aviation Administration (FAA), and Drug Enforcement Administration (DEA). All of these locations require 24x7 classified operations and any break in service will result in immediate mission failure. Due to NUWC’s unique and highly specialized existing infrastructure at the customer’s facility, no other contractor is able to perform at the level of quality

Page 4 of 6 Pages required, ensuring there is no mission failure for NUWC. As sole owners of the described telecommunication equipment and infrastructure facilities, Verizon has restricted access to these facilities. Therefore, Verizon is the only vendor that can support the remote sites involved in NUWC’s mission.

(4) Demonstration of unique source.

Verizon is the sole owner and operator of the unique and highly specialized MPLS network, the Inside Plant/Outside Plant (ISP/OSP) including the entire infrastructure, and only provider of the onsite technical and customer service support at NUWC.

Additionally, Verizon is the only source capable of providing support to NUWC, especially to the remote sites that supports national security requirements, that can meet transition timelines while providing secure voice services and management support within NUWC infrastructure.

(5) Procurement discussion.

Older technology telecommunication services supporting NUWC’s mission were previously implemented by Verizon and supported through an established infrastructure. Verizon currently holds proprietary rights to the information regarding their MPLS Network technical and engineering specifications. Procuring these required services through Verizon’s established infrastructure, via the GSA EIS vehicle, is the only method of meeting NUWC’s mission.

(6) Impact.

If the NUWC requirement is not procured as a sole source requirement through Verizon, the result will be mission failure to maintain 24x7 operational and maintenance services. NUWC depends upon the Verizon network and infrastructure to sustain critical day-to-day operations. Without daily support, DoD personnel at NUWC facilities will lose vital communication support, which will have a devastating impact on specific mission critical requirements.

Further, it would not be feasible, cost-effective, or time permitting to bring in another contractor to re-build an existing infrastructure. In fact, it could cost approximately to $ for installation of a new, parallel ISP/OSP network to replace the existing Verizon network. In addition to the cost, a physical deployment of this scale will likely take 48-60 months to complete. Due to time sensitive DoD and GSA mandates, NUWC must be transitioned to the EIS contract vehicle within 18 months.

Lastly, if forced to begin with a new contractor, the remote NUWC sites will go without service and the NUWC program will experience mission failure due to lack of communication and access to 24x7 data monitoring and network management. The NUWC program supports Homeland Security, FAA, and DEA, which require 24x7 monitoring and managing of the MPLS network provided by Verizon. Losing service for these agencies for any amount of time will result in mission failure and affect national security.

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5. COST/PRICE FAIR AND REASONABLE DETERMINATION: A determination that the price is fair and reasonable will be based on a comparison of Verizon’s proposal to the IGCE and publicized labor rates and categories necessary to perform the support, as well as other historical pricing for similar services. The Contracting Officer will also review and compare the labor rates to the EIS contract rates, which were previously found to be fair and reasonable in a competitive environment. In addition, Verizon may be asked to provide documentation to support their prices, including showing quotes for any equipment or construction, and/or providing copies of invoices for similar contracts.

6. MARKET RESEARCH: Market research was conducted from April 2018 to March 2020 via internet searches, discussions with knowledgeable individuals, and review of the GSA EIS IDIQ.

Market research found the Federal CIO and OMB identified the GSA EIS IDIQ as the vehicle to be utilized for telecommunications requirements, per the Report to the President on Federal IT Modernization issued on December 13, 2017. The GSA EIS IDIQ contract has been deemed a best in class vehicle. Further, a Notice of Intent to award a sole source TO to Verizon was posted on e-buy on March 23, 2020, making it available to all EIS IDIQ vendors. The sole source notification requested companies who believe they can provide this service to indicate their interest in writing within 15 days of the notification. No contractors responded as being able to perform the NUWC requirement.

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

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY: With the constant changes in the IT and Cybersecurity world, new technologies could emerge that could eliminate the need to procure these requirements from only one vendor in the future, but at this time the NUWC has no other resources or vendors that can duplicate NUWC’s existing secure network.

(a) Procurement History.

Contract Number: GS00T07NSD0008 Universal Task Order Number: “NXUV” Multiple Contractor: MCI dba Verizon Business PoP: 29 March 2007 - 28 March 2023 Competitive Status: Fair Opportunity

Contract Number: GS00T07NSD0038 Enterprise Task Order Number: “NXEV” Multiple Contractor: MCI dba Verizon Business PoP: 31 May 2007 – 30 May 2023 Competitive Status: Fair Opportunity

(b) With the need for telecommunications expanding globally, coupled with the rapid advancements in technology, NUWC will continue to survey the marketplace for additional telecommunication vendors that are able to support their unique requirement. If additional vendors are found, the Government will pursue a competitive requirement as applicable.

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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: Melvin Spence SIGNATURE: See PDF signature page

TITLE/ORGANIZATION: Base Communications Officer / NUWC

PHONE: 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: Melvin Spence SIGNATURE: See PDF signature page

TITLE/ORGANIZATION: Base Communications Officer / NUWC

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

NAME: Gloria S. Hoybach SIGNATURE: See PDF signature page

TITLE/ORGANIZATION: Contracting Officer / DITCO / EIS PL8213

HEAD OF THE CONTRACTING ACTIVITY (HCA) 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 does not exceed $93M, this review serves as approval.

NAME: Douglas W. Packard SIGNATURE: See PDF signature page

TITLE/ORGANIZATION: Head of the Contracting Activity / DITCO

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Melissa Trower,