JA20-100 HC101317A0007_Justification for OTFAOC_ATT Wireless Services_Redacted.pdf

AT&T Mobility, LLC (AT&T) Priority Services and International Data Plans

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: 47QTCA19D00MV Blanket Purchase Agreement Number: HC101317A0001 Procurement Title: AT&T Mobility, LLC (AT&T) Priority Services and International Data Plans Estimated Value:

Statutory and Regulatory Authority: 10 U.S.C. 2304(c)(1) and FAR 6.302-1(a)(2)(iii)

Justification for OTFAOC Number: JA20-100

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate (PACA), 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)/Mobility Program Management Office (PMO)/Voice Services (SE5) 6906 Cooper Avenue Fort Meade, Maryland 20755

Contracting Office:

DISA/Defense Information Technology Contracting Organization (DITCO)/PL8414 Mobility Services 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

The DISA Mobility PMO has a requirement to expand capabilities for the Department of Defense (DoD) Mobility Classified Capability (DMCC) Program for Secret and Top Secret mobile devices and services. The nature of this action is to issue a firm fixed price (FFP) modification to the existing DMCC blanket purchase agreement (BPA) with AT&T, “The DMCC Program BPA for Hotspot Devices and Data Service Plans – Domestic and International,” to include AT&T’s priority data services with the First Responder Network Authority (FirstNet) as well as providing larger international data plans. This justification will increase the current ceiling of .

The additional data plans will be negotiated as an FFP line item on the BPA, and mission partners will procure the services through a Telecommunication Service Request (TSR). The BPA has a one-year base period and three one-year option periods; however, this new line item

AT&T Priority Services and International Data Plans –JA20-100

Page 2 of 8 Pages will only be available for procurement in the remaining months of the final option period (June 2020 – February 5, 2021).

3. DESCRIPTION OF SUPPLIES/SERVICES:

The DISA Mobility PMO has a mission to provide the DMCC Secret and Top Secret enterprise capabilities and services to enable global mobility communications to support operations for joint warfighters, national level leaders, and coalition partners. This capability is critical to the security of classified communication at the highest levels of the DoD and non-DoD, as well as, in strategic field locations, globally. Due to the Presidential Proclamation on Declaring a National Emergency Concerning the novel Coronavirus Disease (COVID-19) Outbreak issued on March 13, 2020, and in accordance with maximum telework policies put into place, there has been an immediate need for an increase of DMCC devices, larger international data plans, and priority services. Table 1, below, displays the increased service, plans, and quantities as a result of the COVID-19 response measures:

Table 1: Additional Data Plans as a Result of the COVID-19 Response

Hotspots and Data Service Plans Estimated Quantity

Retransmission Device (Hotspot)

Domestic Data Service Plans

Unlimited Domestic Data Plan 1,600

International Data Service Plans 300 Megabyte (MB) International Data Plan 100

Plan > or = 800MB International Data Plan 100

1.5 GB International Data Plan 500

5GB International Data Plan 200

10GB International Data Plan 100

Device

Samsung Galaxy S7 CROM 600

Samsung Galaxy S3 CROM 2,400

FirstNet Domestic Data Service Plan

Unlimited - FirstNet 2,500

International Data Service Plan (with Domestic FirstNet)

300MB 100

Plan > or = 800MB 100

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1.5 GB International Data Plan 150

5GB International Data Plan 250

10GB International Data Plan 200

The BPA was originally competed utilizing the General Services Administration (GSA) Information Technology Schedule 70, Special Item Number 132-53 for Wireless Services. The BPA procured hotspot devices and data service plans for domestic and international use. Due to the specialized nature of mobile classified communications, a mobile device and a hotspot device is required for operational use. This configuration is different from the commercial offering, where a mobile device only needs a service plan to communicate. Mobile devices were not included in the BPA at award as the DMCC program provided the classified Samsung Galaxy S4 Custom Read Only Memory (CROM) that was part of a DMCC pilot program.

Due to the COVID-19 Presidential Proclamation, and in accordance with maximum telework policies, there is an immediate need for an increase of classified devices, larger bandwidth international data plans, and priority services during times of high congestion.

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:

(a) Description of events.

The DISA Mobility PMO currently provides the DMCC capability to over 4,600 DoD and non-DoD users. The capability includes the DMCC mobile device, data plans, and retransmission device (i.e., hotspot) as identified by National Security Agency (NSA) for secure communication.

In 2013, DISA and NSA piloted a Mobility program to provide classified mobile communications. In a joint effort, the agencies tested and approved the Samsung Galaxy S4 for DMCC-S use. Verizon Wireless and AT&T provided the DMCC services.

In 2015, to address and mitigate evolving cyber security threats, DISA identified the use of a retransmission device (i.e., hotspot) to be used in conjunction with the Samsung Galaxy S4 and future DMCC mobile devices for secure communication. All communication will traverse via the hotspot through use of a commercial data service plan.

In December 2016, a solicitation was posted to GSA eBuy for all IT Schedule 70/SIN 132-53 Schedule Contractors to quote. Only two quotes were received from AT&T and Verizon Wireless. The subsequent primary BPA, HC1013-17-A-0001, was competitively awarded to AT&T. Verizon Wireless was awarded a secondary BPA for access to

Page 4 of 8 Pages coverage in certain areas of the world where AT&T has less than optimal service coverage.

DISA requires the use of highly specialized and selective items from the CSfC Components List since they have been validated by National Information Assurance Partnership (NIAP) as meeting the CSfC mandated required security capabilities necessary to deploy classified communications. As such, the BPA was modified to add the Samsung Galaxy S7 CROM device in January 2018 as authorized via JA18-025, and modified in November 2018 to add the S3 CROM device as authorized via the Contracting Officer’s Justification. The Mobility PMO is requesting the BPA be modified now to add additional data plans for priority service via FirstNet and larger international data plans.

(b) Justification.

(1) Minimum Government requirements. The DoD Chief Information Officer (CIO) has a requirement for DMCC users that provide critical support to the nation’s national security to access Band 14 long-term evolution (LTE) spectrum, which the Federal Communications Commission has allocated exclusively for public safety and first responder communications, known as FirstNet. FirstNet will provide priority services for DMCC devices in support of the DoD CIO’s requirement for priority and preemption services to critical DMCC users during a time when the commercial network is congested. The FirstNet capability ensures effective communication during mission essential and emergency situations is sustained for continuous operations.

Additionally, larger international data plans are required as a result of the COVID-19 emergency response declaration requiring maximum telework. Users with DMCC devices are leveraging increased voice, video, and data communications, which is requiring more data usage. Due to the increase in data usage, international DMCC users are requiring larger capacity data plans as users are exceeding the current maximum 800MB international plan when teleworking.

(2) Proposed sole source contractor. AT&T has the capability to deliver the DMCC devices and service offerings. Due to the unique nature of the procurement terms and conditions and the Government’s requirement to deliver on demand, AT&T is the only authorized reseller identified in market research to meet this requirement.

Priority Services - In March 2017, AT&T was awarded the contract to develop, deploy, and maintain Band 14, the exclusive wireless spectrum licensed to FirstNet, which creates a nationwide public-safety wireless broadband network. The 25-year contract was awarded competitively following a Request for Proposal issued on FedBizOpps by the Department of Commerce and FirstNet. AT&T began fielding the FirstNet infrastructure in 2018, enabling AT&T as the only provider for this specific service of public safety communication, justifying the limited source.

Larger International Plans - In conjunction with the domestic data plans, the Mobility PMO requires international data plans to meet larger DMCC bandwidth requirements.

As the primary BPA provider, the DMCC Program has currently supports over 4,600

Page 5 of 8 Pages users with AT&T hotspots and data plans, with an additional 4,000 users due to COVID-19 mass telework. The DMCC mission partners can leverage AT&T’s international data plans without requiring re-provisioning or switching out SIM cards.

To provide any other cellular provider’s data plan, would require the devices be sent back to DISA Headquarters to be re-provisioned with a new hotspot of a different provider. Re-provisioning over 8,600 devices would cause an insurmountable amount of user downtime. This is not feasible under normal conditions let alone the current COVID-19 emergency.

AT&T is the only provider that has the FirstNet network infrastructure to provide the priority and preemption requirement. Verizon Wireless, the secondary BPA provider for hotspots and data plans, is unable to meet the Government’s requirement. Verizon Wireless does not provide the required priority services utilizing Band 14 LTE (FirstNet), they do not offer DMCC devices on demand as part of their business lines (e.g. S7, S3) and they cannot provide the required international data plans to be compatible with FirstNet. As stated above, AT&T was the sole awardee for the contract to develop, deploy, and maintain Band 14, the exclusive wireless spectrum licensed to FirstNet, which creates a nationwide public-safety wireless broadband network. No other sources exist for FirstNet. AT&T’s international data plans are also required as only AT&T plans are compatible with AT&T’s SIM cards.

(3) Discussion regarding cause of the sole source situation. The current BPA contractor, AT&T, is poised to offer the devices on demand to the Government, as one of their business lines is the resale of mobile devices. AT&T currently provides the required accompanying hotspots and data plans as well as the S7 CROM and S3 CROM devices for the DMCC users. In a time of crisis, they have the ability to provide a complete DMCC solution that leverages the AT&T priority services as well as provide larger international data plans. The current DMCC primary cellular network can become congested and unable to pass voice and data traffic. Having the AT&T priority service capable hotspots will provide priority and preemption to the cellular tower. The DMCC users will be on the Band 14 private network. Band 14 along with the AT&T data plan provides the priority and preemption services between the hotspot device and the cellular network. Only AT&T can provide the international data plans for all of the AT&T deployed hotspots.

(4) Impact. Without procuring AT&T FirstNet wireless capabilities for use during mission-essential/critical and emergency situations, 10,000 DoD CIO critical users may be unable to effectively communicate with Geographic Combatant Commanders or give orders and authorizations directly related to the national security of the United States.

Without providing an option for the larger data plans, the DMCC users will continue to have to pay high overage fees because they are using more data than their plan covers. These fees will be minimized and even avoided by providing the users an option to select larger data plans.

Page 6 of 8 Pages

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

The Government intends to synopsize this contract action in accordance with FAR Part 5 procedures and attach the J&A.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The GSA has already determined the prices of supplies and services to be fair and reasonable for the purpose of establishing the schedule contract. However, the Contracting Officer will determine the prices offered fair and reasonable before the BPA is established. The complexity and circumstances of this requirement will determine the level of analysis and the techniques used to determine the proposed price is fair and reasonable. Such methods include those identified in FAR 15.404-1(b)(2)(ii) & (iv).

8. MARKET RESEARCH:

Due to the unique nature of the procurement terms and conditions and the Government’s requirement to deliver on demand, AT&T is the only authorized reseller identified in market research to meet this requirement. AT&T is also the sole source awardee of the Government contract to develop, deploy, and maintain Band 14, the exclusive wireless spectrum licensed to FirstNet. DISA conducted market research by reviewing wireless providers and existing contracts that have priority service and international data plans available to determine possible sources. In May 2020, DISA SE5 conducted market research to review, AT&T, Verizon Wireless, and T-Mobile capabilities. Verizon Wireless does not meet the minimum Government requirements as they do not utilize or have access to the FirstNet infrastructure and provide only 1% of service to the DMCC users. T-Mobile does not meet the requirements because they do not have an Authorizing Official (AO) approved hotspot, a requirement to pair a hotspot with a DMCC phone. Therefore, T-Mobile cannot provide the data plans, as their hotspot is required for use to access their data plans. Additionally, T-Mobile does not utilize or have access to the FirstNet infrastructure. Only one provider can be assigned to a device and AT&T is the primary BPA provider supporting 99% of the DMCC users. In fiscal year 2017, the requirement was competed among all AO approved hotpot and data plan providers and awarded to AT&T. A secondary BPA was awarded to Verizon Wireless to provide access to coverage in certain areas of the world where AT&T has less than optimal service coverage. AT&T is the primary provider for the DMCC capability as well as has the only contract to provide the FirstNet capability.

Based on these efforts, a sole source acquisition is recommended for the larger international data plans and priority service, which can only be supported by AT&T. A notice of proposed contract action will be published to BetaSAM along with this J&A.

9. ANY OTHER SUPPORTING FACTS:

None.

Page 7 of 8 Pages

10. LISTING OF INTERESTED SOURCES:

None. As stated in Paragraph 6 above, a synopsis will be published prior to issuance of the modification.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History.

Contractor: Cellco Partnership (dba Verizon Wireless) Business size: Large Contract Number: GS-35F-0ll9P, subsequent task orders/Communication Service Authorization (CSA) are awarded via this BPA Dollar value:

BPA Number: HC10137A0007 BPA Ordering Period: April 7, 2017 – February 5, 2021 Type of Acquisition: Sole Source (FAR 8.405-6)

Contractor: AT&T Business size: Large Contract Number: GSA Federal Supply Schedule Contract GS-35F- 0297K/47QTCA19D00MV subsequent task orders/CSAs are awarded via this BPA Dollar value:

BPA Number: HC101317A0001 BPA Ordering Period: February 6, 2017 – February 5, 2021 Type of Acquisition: Competitive (FAR 8.4)

(b) The Government will continue to search the market place to identify any future devices and/or sources that can offer a NIAP certified/approved CSfC configuration mobile devices and required services. The Government intends to synopsize the requirement in accordance with FAR Part 5; furthermore, the synopsis will remain “active” for the duration of the BPA to allow for other contractors or devices to be considered for use under the DMCC program.

(c) The requirements for the classified device capability will be continually monitored, updated, and reassessed as the Government moves forward to remove barriers to competition. The Government will continue to perform market research to determine if market conditions have changed and/or identify other CSfC devices and required services eligible for use under the DMCC program.

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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: SIGNATURE: See separate signature page

TITLE/ORGANIZATION:

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: SIGNATURE: See separate signature page

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

NAME: Angela K. Zang SIGNATURE: See separate signature page

PROCURING ACTIVITY COMPETITION ADVOCATE 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 $13.5M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

NAME: Gay Arnold SIGNATURE: See separate signature page

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Angela K. Zang, 618-418-6435, angela.k.zang.civ@mail.mil.